May/June 2019 BUSINESS FRANCHISE Australia and New Zealand by CGB Publishing

Printing Since 1899 At Snap, we’ve been in the printing business for the past 120 years We’ve seen a lot of changes since then, but today we’re still known for the creative print and graphic design solutions that we’ve been providing Australian businesses for generations.

Franchise Opportunities Available Now If you want to learn more about becoming part of the Snap team, we’d love to hear from you!

franchiseenquiries@snap.com.au 1300 810 233

Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. We set up shop for you and give you

full training

We take payroll admin off your hands

and help with the book-keeping

We deal with suppliers to get you the

best products

We manage the fuel

Financials

Contact Details

An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

We have brands you won’t ﬁnd anywhere

Brett Reading Queensland

E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia

E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales

E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

else

We provide advertising and promotional

support

START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au

FRANCHISING

Finance your Equipment & Fitout with Franchise Finance Australia Finance Australia can get you the equipment you need for your franchise today. What Can We Fund? - New Store Fitouts - Store Refurbishments - Business Re-sales - Equipment Purchases - Vehicles, Trailers & Vehicle Fitouts - National Equipment Roll-outs

Why Choose Us? - Competitive Rates - 24/7 Customer Service - Repayments Can Be 100% Tax Deductible - Terms Start From Just 12 Months - Flexible End Of Term Options - Fast Online Application Process

FRANCHISE

FINANCE AUSTRALIA

Call us on 1300 659 676

Division of

GROUP

B US i N eSS F r A N c H i S e M AG A Z i N e AUSt r A L i A A N d N e W Z e A L A N d

AUSTRALIA and NEW ZEAL AND

AUSTR ALIA and NEW ZEAL AND

FrOM tHe

BUSINESS FRANCHISE AUSTRALIA AND NEW ZEALAND VOLUME 13 ISSUE 4, MAY/JUNE 2019

Publisher

PRESIDENT: Colin Bradbury. colin@cgbpublishing.com PUBLISHER: Vikki Bradbury. vikki@cgbpublishing.com SALES & MARKETING MANAGER: Kathleen Lennox. kathleen@cgbpublishing.com.au EDITORIAL: Felicity Sutton. editor@cgbpublishing.com.au

‘The greater the obstacle, the more glory in overcoming it.’ - Moliere

Welcome to the latest edition of Business Franchise Australia and New Zealand. Since the publication of our last issue, the biggest industry news has been the release of the franchising inquiry report on 14 March 2019. The report, titled ‘Fairness in Franchising’, is the result of a year-long investigation into the operation and effectiveness of the Franchising Code of Conduct, conducted by the Parliamentary Joint Committee on Corporations and Financial Services (try saying that ten times fast).

PRODUCTION: Mallory Anderson. production@cgbpublishing.com.au

The committee made several recommendations to improve conduct across the industry and promote fair and positive relationships between franchisors and franchisees. The full report is available to download from the Parliament of Australia website (https://aph.gov.au). For more on the inquiry, see Behind the Headlines on page 84, and a response from Mary Aldred, CEO of the Franchise Council of Australia, on page 14.

ACCOUNTS: accounts@cgbpublishing.com.au

But with every challenge comes an opportunity, and the franchising industry now has an opportunity to improve and become even stronger.

GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: INXPRESS TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz

We have a bumper issue of Business Franchise magazine for our readers this May/June. We are delighted to feature InXpress on our front cover; turn to page 12 to read more about this successful franchise organisation that provides shipping solutions to clients across Australia and around the world. Included in this issue is our quarterly executive publication, Business Franchisor, which begins on page 29 and features specialist legal firm Marsh & Maher Richmond Bennison on the cover. We also have a special feature on franchises in business services, starting on page 55. As always, there is plenty of franchising news and several expert advice articles from our professional contributors, who have shared their industry knowledge to guide franchisors and franchisees alike. Business Franchise readers can gain free entry to the Franchising & Business Opportunities Expo held each year in Sydney, Brisbane and Melbourne. The next expo will be at the Brisbane Convention & Exhibition Centre on 1–2 June. Simply visit https://www.franchisingexpo.com. au/ and use the code BFM when purchasing to secure your free ticket. We look forward to seeing you there! Enjoy the read. Vikki Bradbury Publisher SUPPLIER FORUM

The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

Business Franchise Australia and New Zealand 5

contents

MAY/JUNe 2019

On the Cover

cover story: inXpress — a smart investment

The human dimension of successful franchising

The lone entrepreneur

buying a franchise? if it doesn’t add up, don’t sign up

special feature: business services

In Every Issue 8

What’s new! announcements from the industry

a message from the ceo mary aldred, franchise council of australia

feature editorial: business supporting business

hot Topics: behind the headlines Jason gehrke, franchise advisory centre

professional services listings

listings

a—Z directory

Focus Feature 49

9round enters the ring

Expert Advice 16

franchising with your family fc business solutions

franchise hacks to avoid the headlines alivia hardy | employsure

The human dimension of successful franchising mhairi holway | The hr dept

anytime fitness embraces cloud-based Whs platform safety navigator

seven Questions for the aTo about single Touch payroll John shepherd | australian Taxation ofﬁce

The lone entrepreneur david banﬁeld | The interface financial group

buying a franchise? if it doesn’t add up, don’t sign up mick Keogh | australian competition and consumer commission

ALSO IN THIS ISSUE: Proﬁles

7-eleven ..................................................................... 3, 92

Zarraffa’s coffee: The united blends of Zarraffa’s

appliance Tagging services ............................... 92

laser clinics australia: opportunity for a perfect match

hog’s australia’s steakhouse: Q&a with hog’s franchise recruitment manager

the lott: australia’s ofﬁcial lotteries

Tutor doctor: changing lives Through education

franchising expo: an ideal forum for new ideas

battery World .............................................................. 92 bK’s Takeaway ........................................................... 92 clark rubber ..................................................93, obc deckseal ........................................................................ 93 ecomist ........................................................................... 93

BUSINESS SERVICES FEATURE 56

What’s new! announcements from the industry

feature editorial: business supporting business

expert advice: considering a business services franchise? issues to consider and Questions to ask louise Wolf | msT lawyers

spotlight on service: The interface financial group: hard Workers – not Wanted!

expert advice: obsess over your customers, not your competitors

fasta pasta ................................................................... 93 fc business solutions........................................... 35 franchise finance australia ................................... 4 ip partnership.............................................................. 89 Jim’s pool care .......................................................... 94 Just cuts australia ................................................... 95

darrell hardidge | saguity

Just cuts new Zealand......................................... 95

snapshot: harmoniQ: franchisors — are your systems holding your business back?

listen To your body ................................................ 95

expert advice: how to be a franchise That delivers

lock & roll .................................................................... 95

peter lipinski | fastway couriers

snapshot: fcf fire & electrical Wants you!

magnetite Windows ................................................. 96 mobile skips................................................................. 96

businEss franchisor 32

cover story: marsh & maher richmond bennison

in Every issue 30

news items

a—Z directory

profile 40

shift8: revolutionising pos for franchises

Expert advice 36

The efﬁcient outsourcer corina vucic | fc business solutions

accreditation: Taking your franchise network to the next level James scurr | franchise finance australia

The changing face of australian franchise recruitment James young | dc strategy

The importance of uniforms for franchisors pamela Jabbour | Total image group

nanoshield .................................................................... 96 nfib - national franchise insurance brokers ................................................................. 48, ibc nirvana beauty laser clinics............................. 96 ryco 24.7..................................................................... 96 safety navigator .........................................................73 snap-on Tools..................................................... 73, 97 snap printing ..................................................... ifc, 97 spray pave australia ................................................97 Theobroma chocolate lounge ........................ 98 Thermawood ............................................................... 98 viva energy ........................................................... 45, 48

what’snew! Cirillo opens flagship showroom in Sydney hot spot franchises across the quick service restaurant, electrical appliances and personal grooming sectors. The brother and sister duo were attracted to Cirillo because they believe it is a business built around old-fashioned customer service and a unique product offering that can bring people’s visions to life. ‘We all know how challenging it can be to go from retailer to retailer to find various products that form part of a renovation or building project,’ said Anuj. ‘At Cirillo’s, customers have all their home improvement requirements met under one roof, and managed by one point of contact for the whole sales process.’ Managing Director Joe Cirillo is thrilled to have Anuj and Anita join the Cirillo family. ‘The Sharma’s franchising track record speaks for itself,’ he said. ‘We know their affinity with our superior European and Australian products and forward-thinking layouts. Their proven commitment to customer service will see the showroom become a valuable resource for the home owners and builders of the Hills District.’ In March this year, Cirillo Lighting and Ceramics launched its flagship store in Sydney’s burgeoning Castle Hill district.

built showroom. Members of the Cirillo family, including founder Cos Cirillo, were special guests at the launch.

Franchisees Anuj and Anita Sharma celebrated the opening with a function at their custom-

Anuj and Anita are no strangers to franchising, having owned successful

This is the second franchise for Cirillo Lighting and Ceramics. Originating in Canberra, the company opened its first franchise in Brookvale in 2017. www.lightingandceramics.com.au

La Porchetta Ballarat a Triple Winner La Porchetta Ballarat has won the group’s coveted Franchisee of the Year award for the third time. The much-loved local restaurant previously won the same award in 2008 and 2015. The Franchisee of the Year award is judged on best practice and ambassadorship for the brand. La Porchetta CEO Sara Pantaleo said, ‘Ballarat embraces our company’s family culture and focus on service. They have consistently upheld our high standards and in 2018 they stood out on all our measures of excellence.’ La Porchetta Ballarat is truly a family business, owned by Loretta and Aldo Leone and their son, Andrew, with their daughter Mary-Louise also working in the restaurant. All were surprised and delighted by the win. ‘This award belongs as much to our hard working and loyal staff as it does to us,’ said Loretta. ‘They are a great team.’ Aldo and Loretta Leone have owned their restaurant for 15 years and they were recently joined in the business by their son. In that time, they’ve watched the children of many of their long-time customers marry, have their own families and come in with their babies. ‘It makes

8 Business Franchise Australia and New Zealand

us very proud,’ said Loretta. ‘We treat our customers as family and over the years, many have become like family to us.’ La Porchetta is one of Australia’s most popular family restaurants. See more at www.laporchetta.com.

Anytime Fitness announces new partnership with R U OK? Upcoming charity challenge asks Australians to Tread As One to support suicide prevention Australia’s largest gym chain, Anytime Fitness, recently announced a new partnership with suicide prevention charity R U OK? via its annual fundraising challenge, Tread As One. This sees the clubs keep one or more of their treadmills running for 24 hours, while participants receive donations for every 15minute slot they complete on the treadmill. Some clubs even see members undertake the full 24 hours on their own! ‘Our franchisees, members and staff all over the country look to their local Anytime Fitness as an integral part of their community,’ says Gordon Martin, general manager of Anytime Fitness. ‘We are proud to play such an important role in the lives of Aussies, and continue to do so with the Tread As One initiative and R U OK?. ‘With 89% of Australians reporting that they know someone who has made a suicide attempt, inspiring and empowering individuals to start a conversation with

someone who might be struggling with life is much needed.’ R U OK? is one of Australia’s most recognised suicide prevention charities. It encourages people to hold meaningful conversations with those around them and ask, ‘Are you OK?’. Peer-to-peer support can save lives, and R U OK? works to equip people with the skills and confidence to navigate a conversation when someone says, ‘No, I’m not OK’. R U OK? CEO Katherine Newton says, ‘We’re thrilled to have the opportunity to partner with Anytime Fitness and spread the R U OK? message through its vibrant community. We know that making regular visits to the gym and being with our gym buddies can provide a sense of belonging. We want members to look out for each other and trust their gut when they notice the signs that someone in their gym community might be struggling with life.’ The Anytime Fitness treadmill challenge started in the community, when a group of

friends bereaved by suicide held a 24-hour challenge with one treadmill in Sydney’s eastern suburbs. It has now grown to hundreds of locations, with thousands of community members coming together to bring mental health awareness to light. Since 2017, Anytime Fitness has raised over $800,000 for mental health charities. Tread As One 2019 runs from Friday 31 May to Saturday 1 June at participating Anytime Fitness clubs nationwide. Register at: www.anytimefitness.com.au/treadmillevent

Fairmont Resort & Spa Blue Mountains set to play host to the inaugural UTA11 trail race Six hundred runners will descend upon Fairmont Resort & Spa Blue Mountains on Thursday 16 May 2019, as it gears up to play host to the inaugural Ultra-Trail Australia 11 (UTA11) trail race.

excitement at the opportunity to play a part in the UTA11. As an avid four-time UTA100 runner, Scott is gunning for a personal best this year and is a passionate wellness advocate himself.

As the name suggests, UTA11 is an 11km race – challenging but achievable for trail runners of all abilities, unlike the gruelling UTA100. Entrants will line up at the Fairmont Resort on the edge of the World Heritage-listed Blue Mountains National Park, one of the most iconic backdrops in the world, to depart at 1pm. The race will finish at the UTA race hub at Scenic World.

‘This new event is particularly close to my heart,’ he said. ‘We are excited to be the starting line for the new UTA11, as well as a checkpoint on the 50km and 100km track. We were keen to throw our support behind this event as it makes trail running more accessible to people of all abilities.

The course will see entrants traverse the most stunning walking tracks of the Blue Mountains, including the Pool of Siloam, the bridge at Elysian Rock, Leura Cascades, Bridal Veil Falls, Amphitheatre Track, Lila Falls, Leura Forest, and the infamous 951 Furber Steps. Scott O’Neile, general manager of Fairmont Resort & Spa Blue Mountains, expressed his

‘Aligning with UTA also ties in with our wider wellbeing strategy at Fairmont Resort & Spa, as we strive to create a place of relaxation and rejuvenation.’ The Fairmont Resort & Spa Blue Mountains is offering special rates on Wednesday 15 May to streamline check-in for Thursday’s race. All runners staying at the resort can check in for the race at the resort itself, saving valuable time. Check-in for all other runners is at Scenic World, with buses shuttling to the

Fairmont Resort starting line throughout the morning. Ultra-Trail runners can soothe their tired muscles and calm their minds with a hot stone massage and foot renewal at Fairmont’s new Ubika Day Spa. Peruvian Basalt stones will melt away tension and a blissful foot exfoliation will leave runners walking on air. To book a stay at Fairmont Resort & Spa Blue Mountains, phone 02 4785 0000 or email reservations@fairmontresort.com.au. For Ubika Day Spa bookings, phone 02 4785 0062.

Business Franchise Australia and New Zealand 9

what’snew! Hotel Chadstone taking reservations, opening November 2019 hotel, said: ‘AccorHotels is thrilled to be embarking on this landmark hotel project with Vicinity and the Gandel Group. Hotel Chadstone Melbourne will further enhance the internationally recognised Chadstone experience.’ Chadstone General Manager Fiona Mackenzie said: ‘Hotel Chadstone Melbourne will be the leading Australian hotel to integrate some of the world’s best hospitality, lifestyle and luxury offering at Australia’s number one retail precinct. Guests will enjoy an opulent destination to prepare or pamper, depending on whether they’re visiting for business or leisure.

Hotel Chadstone Melbourne is now accepting reservations, with the first guests to check in for their stay at the city’s newest luxury destination in November 2019. Accor and Vicinity Centres have unveiled new details around the $130 million project, currently under construction.

The 12-storey, 250-room hotel, with rooftop conservatory bar, swimming pool and wellness centre, will offer panoramic views from Port Phillip Bay to the CBD and across the Dandenong Ranges, setting a new benchmark for luxury accommodation outside Melbourne’s city centre. Neil Scanlan, general manager of the new

‘Hotel Chadstone Melbourne will be a worldclass destination for luxury accommodation, business and conferences, exceptional dining and indulgent wellness experiences, catering to the current 24 million people, including 450,000 international guests, who visit Chadstone each year, with this number continuing to grow.’ Guests can now reserve rooms via accorhotels.com.

New franchise ratings system to focus on performance and transparency FRANdata launched a new objective ratings system for Australian franchise brands in March 2019. If experience in the US is a guide, the ratings system will quickly become the key industry standard for performance assessment and comparison. FRANdata’s rating system recognises that renewed and enduring confidence in franchising requires a focus on performance and transparency. A similar message has emerged from evidence to the recent parliamentary inquiry into franchising. FRANdata has built a set of standards to enable a consistent evaluation of Australian franchise systems. The foundation of these standards is the objective measurement of performance across critical areas of a franchise system. The performance outcome metric is a graduated star rating scale. The Franchise Rating Scale™ is underpinned by seven performance standards which include: • • • • • • •

System Performance Franchisee Financial Performance Franchisee Engagement and Satisfaction Franchisor Training and Support Franchisor Financial Performance Lender Relations Compliance

10 Business Franchise Australia and New Zealand

Independent rating systems are nothing new, even in franchising. However, they are new to Australian franchising, and arguably long overdue. Specific franchise rating systems are widely used in the US. FRANdata’s US CEO, Darrell Johnson, said: ‘In the US, FRANdata has been providing ratings systems and services for 30 years. There are two keys to successful ratings systems – the assessment must be conducted independently, and the assessment must be objectively based on factors relevant to the decision of the prospective franchisee and others (such as financiers) involved in the transaction. The Australian franchise ratings system will bring both.’ The ratings system will be quickly embraced by quality franchise systems seeking opportunities to objectively differentiate themselves in a competitive market. Financiers, investors, prospective franchisees, regulators and even the media are likely to be attracted to the independence and objectivity of the new system. www.frandata.com.au

inKind picks up the tab

A new level of customer service is being served up in the form of restaurant loyalty platform inKind. With benefits for both hospitality businesses and their customers, inKind is announcing its first international expansion to Australia in partnership with global hospitality funder Silver Chef. Created by restaurant owners, for restaurant owners, the inKind platform provides alternative funding solutions, while also boosting customer loyalty to hospitality businesses who are looking to expand their restaurant or cafe. inKind offer owners prefunded capital in return for vouchers, usually used to fund growth through expanding sites, funding new menus or increasing marketing activity. The platform’s app has launched Australiawide with over 50 restaurants signed up across the country, following a successful pilot of 10 restaurants in 2018 and $350,000 in funding sold via credit, or House Accounts, to their customers within the first six months. Founded in 2008 in Washington DC, by tech guru and restaurant investor Johann Moonesinghe, inKind has already taken the US restaurant scene by storm. The innovative funding model means owners can access cash upfront (without a loan) to grow and improve their business, while also gaining an engaged customer base to deliver world-class service to. Marketing collateral and staff training is also provided by inKind as part of the partnership. For more information visit https://www.inkind.com.

Zagame’s House opens in May 2019 Zagame’s, one of the most respected names in Victoria’s hospitality industry, will be adding an exciting new venture to its already diverse portfolio with the opening of its first unique hotel, Zagame’s House, in May 2019. Located in Lygon Street, Carlton, on the fringe of the CBD, the design-driven Zagame’s House is the result of a complete $18 million transformation of the former hotel operated by the Zagame family for 16 years. Brothers Victor and Robert Zagame commented, ‘No expense has been spared in the transformation of this property. We invite our guests to experience for themselves the exquisite art, luxurious amenities and state of the art technology. Expect the unexpected when it comes to exceptional service as our team will impress even the most experienced traveller.’ The 97 rooms are equipped with contemporary comforts and custom furnishings to deliver guests a new level of luxury. Bedrooms come complete with king-sized beds, European pillows and locally produced linen, while integrated technology outlets and acoustically panelled walls make for optimum privacy and ambience. Feng

Shui master Edgar Lok Tin Yung provided consultation on the project to ensure the correct flow of Qi throughout the hotel, harmonising great sleep and cleansing the energy for ultimate relaxation and mindfulness. Generous bathrooms feature modern matte black hardware, alongside custom-lit circular mirrors that feature multiple illumination settings. Head designer Kas Makohon said: ‘From the bold, geometric detailing on the hotel’s exterior, to the unexpected, psychedelic artworks that line the hallways, each time you go into a different part of a hotel a whole new sensory experience awaits.’ From its original design features and cuttingedge technology to its locally sourced food and beverage offerings, the new Zagame’s House will showcase the local DNA of its surrounds, positioning itself as the place to stay when seeking the quintessential Melbourne experience. The Zagame family have been in business for over 52 years and have built a reputation that is synonymous with the highest quality in service, food and hospitality. www.zagameshouse.com.au

Business Franchise Australia and New Zealand 11

C OV ER STO RY: i n x p re s s

inXpress:

First class serVice, worlD class shipping, anD a smart inVestment inxpress welcomes new Asia pacific ceO Marcel Lal joined InXpress in January 2018 as the General Manager for Australia and New Zealand, with a background of more than 25 years in management and marketing. After just over a year in the GM role, he rose to the position of Asia Pacific CEO in April 2019. ‘It’s only a recent change, but I’m enjoying the transition,’ says Mr Lal. ‘I feel humbled to be moving into the Asia Pacific lead role. While there are six country operations to evolve and grow in this region, I will still be heavily involved with Australia as our third largest operation globally. ‘We’ve brought on an experienced leader from the logistics industry as our GM for Australia and New Zealand in James Buck, and James and I are already working closely together.’ This new development for the Asia Pacific region comes as the previous CEO Lindsay Birley was appointed as the InXpress global Chief Strategy Officer, and the shipping and logistics company goes from strength to strength. InXpress is celebrating its 20th year anniversary this year. Since its humble beginnings in the UK in 1999, InXpress has grown and expanded into the US and other countries around the world. Australia is now in its 11th year, with consistent year-on-year growth, and is one of 14 countries in the InXpress global operation.

Specialised support for businesses InXpress franchisees are freight consultants who tailor solutions for small and medium enterprises (SMEs). As a customerfocused B2B business, InXpress has global partnerships and strong local relationships

12 Business Franchise Australia and New Zealand

with key carriers such as DHL, TNT/ FedEx, UPS and StarTrack. The company’s global buying strength and personalised service means that business customers receive competitive rates through an automated online platform, with prompt support from a local consultant.

taking the stress out of shipping InXpress offers its customers peace of mind when it comes to managing all their shipping and delivery needs. ‘We’re essentially providing SMEs with an ease of doing business,’ Mr Lal explains. ‘We save thousands of Australian businesses time and money so they can focus on doing what they do best, without having to worry about their freight requirements.’

A true franchising partnership InXpress has 350 franchises worldwide, and 50 franchises currently operating in Australia. It’s an appealing choice for franchisees. ‘The low cost of entry and minimal ongoing overheads are certainly a big part of the initial appeal of the InXpress franchise model,’ says Mr Lal. ‘But when you dig a little deeper and look at our 20-year record of consistent growth, and that management fees are taken from margin and not revenue, many people see that the franchisor–franchisee relationship is a true partnership, as both parties have a common focus on maximising margins.’

celebrating franchisee success Mr Lal can attest to a good relationship at InXpress between the company and its franchisees. ‘I feel that the overall relationship is fairly strong, and the open communication and year-on-year growth from the majority of our franchisees demonstrates this,’ he says. ‘However, we acknowledge and invite constructive criticism, as we can always improve and evolve.’

Last year InXpress celebrated its first ever Australian franchisee to achieve $1 million in margin. ‘This is indicative of their focused approach and testament to our proven franchise model,’ says Mr Lal. ‘Others who follow this approach are also experiencing strong annual growth, not just in revenue but more importantly in margin and profitability.’

Advanced online bookings What’s next for InXpress? The global company continues to grow, completing the implementation of a new online booking platform that will enable new products and services to be automated for business customers. ‘It’s an exciting step to support our future growth,’ says Mr Lal.

transparency at the heart of successful growth InXpress, like all franchised businesses, is not immune to the challenges faced by the franchising industry in Australia. ‘Certainly there has been an unfair perception of Australian franchising recently, where a very small number of bad practices has impacted the overwhelmingly excellent work done by the large majority of franchisors,’ Mr Lal concedes. ‘It can be hard when that 99% of good work is overshadowed.’ This perception can have an impact on initial franchise enquiries, but Mr Lal is confident that recruitment at InXpress remains strong. ‘At InXpress we feel very comfortable with our extensive franchise recruitment process,’ he says. The company’s policy of open communication and transparency has served them well, on both sides of the franchisor–franchisee relationship: ‘It is not only beneficial to prospective franchisees, but also to us, to provide full disclosure and the opportunity for them to assess our franchise system in detail.’

“the company’s global buying strength and personalised service means that business customers receive competitive rates through an automated online platform, with prompt support from a local consultant.”

Key advice for prospective franchisees With his extensive business management experience, what advice does Marcel Lal have for people who are thinking of buying a franchise? ‘Don’t be afraid to take the step, but do your research thoroughly,’ he says. ‘You must be prepared to put in the hard work and stick to the franchise model of operating.’ Becoming a franchisee can be a way to ensure that you are supported to start your own business. ‘Franchising is proven to offer a better chance of success than going out on your own,’ says Mr Lal. ‘A good franchise system will give you all the support, training and motivation you need to be successful.’

Local and regional opportunities now available InXpress is looking for new franchisees in Australia, New Zealand and across the Asia Pacific region. A positive approach and strong activity levels are essential, and sales or commercial expertise is also beneficial. InXpress offers its franchisees comprehensive initial training, ongoing support, and development from a dedicated business coach to help them succeed. ‘We have franchisees from a wide variety of backgrounds, but what they have in common is a willingness to learn and to follow a system which has been proven over two decades,’ Mr Lal says. ‘Our team would love to hear from interested individuals who are considering making that next step.’ For more information, visit www.inxpressfranchises.com.au

Business Franchise Australia and New Zealand 13

F r A N c H i S e c O U N c i L O F AUSt r A L i A

A MESSAGE FROM

THE CEO As we move towards the end of financial year, i am hearing more stories about what a tough year it has been for small to medium enterprises (SMe) because of lower consumer spend.

â&#x20AC;&#x153;the FcA is proposing the introduction of two mandatory measures: a sector-wide registry of all franchise systems, and a requirement for prospective franchisees to obtain business and legal advice.â&#x20AC;? Mary Aldred | ceO | FRANCHISE COUNCIL OF AUSTRALIA

Factors such as anti-competitive leasing terms, escalating overheads, lack of finance options and red tape have also been cited as root causes of many problems for SMEs struggling to make a profit.

franchising. A key message of our submission to the inquiry is that while Australia leads the world in franchise and consumer law, better enforcement of existing regulations is a priority.

Franchising works best when there is open collaboration between franchisors and franchisees, and the FCA is committed to ensuring their mutual success.

We welcome the fact that enforcement has been stepped up recently, with the first prosecutions for breaches of the franchising code and consumer law. The ACCC has also announced that it is targeting the most problematic sector in small business â&#x20AC;&#x201C; food services.

In 2018, the FCA closely followed and considered the issues raised during the hearings of the parliamentary inquiry into the franchising code and provided detailed submissions to the inquiry. The problems highlighted were concerning, and the FCA will not tolerate poor standards or noncompliant behaviour by either franchisors or franchisees. The inquiry showed a need to strengthen compliance, education and standards in

The FCA is committed to improving standards, providing our members with better access to information and education, and ensuring that regulations and rules are adhered to and enforced. More broadly, however, there needs to be a frank conversation about being willing to address some sensible steps of reform to boost

14 Business Franchise Australia and New Zealand

compliance around franchise agreement, disclosure and due diligence. The FCA is proposing the introduction of two mandatory measures: a sector-wide registry of all franchise systems, and a requirement for prospective franchisees to obtain business and legal advice.

A sector-wide registry of all franchise systems A mandatory, sector-wide registry of all franchise systems that is led by industry and backed by government would be a substantive reform of franchising in Australia. Mandatory registration of franchise systems could strengthen compliance and provide significant additional protection for franchisees, without tipping the balance too far or removing the duality of responsibility

in what is a collaborative business model with strong competitive advantages. The concept itself is not new, and, while not a complete panacea, mandatory registration could deliver significant new benefits, by: • ensuring core fundamental compliance obligations are met by all franchise systems, not just those that choose to do so or are audited by the ACCC • providing additional information for prospective franchisees and their advisers in an easily searchable registry • providing an early-warning mechanism that could alert the ACCC to possible breaches of the law.

Mandatory requirement for prospective franchisees to obtain business and legal advice One of the structural themes emerging from the parliamentary inquiry is that too many franchisees are choosing to ignore the

“the Franchise council of Australia will continue to advocate strongly for franchising and small business to achieve a fair and better operating environment, and that includes ensuring healthy and productive relationships between big and small business partners, including franchisors and franchisees.”

strong and explicit recommendations in the Franchising Code of Conduct – and the mandatory documents provided by franchisors to every prospective franchisee – to obtain legal and business advice.

are now 80,000 businesses operating within 1314 different franchise systems, contributing $181.8 billion annual revenue and employing 594,500 people across urban, rural and regional Australia.

Making it mandatory for prospective franchisees to obtain business and legal advice would ensure proper due diligence by prescribing franchisees to be fully informed before entering a contract.

Australian franchising is heavily oriented to the small-to-medium enterprise sector, with over 90 per cent of franchisees representing small business.

Even though the regulatory and dispute resolution framework for Australian franchising is widely considered to be one of most comprehensive and effective regimes in the world, we recognise that there are issues to be addressed. Australia is a very franchised economy. There

The Franchise Council of Australia will continue to advocate strongly for franchising and small business to achieve a fair and better operating environment and that includes ensuring healthy and productive relationships between big and small business partners, including franchisors and franchisees. www.franchise.org.au

Business Franchise Australia and New Zealand 15

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Franchising

with your family:

Tips for managing business and family relationships One of the benefits of purchasing a franchise is that you are building an asset for your family. However, it also means that they are likely to stay closely involved. Many franchisees find that working with family members is partand-parcel of running their own business. Working with family can be a successful way to secure trusted employees – after all, they are personally invested in seeing the business thrive. Unfortunately, for many families it can end in tears, placing stress on relationships both inside and outside the business. Here are six key tips for keeping your family and your business on track:

Establish clear roles, responsibilities and management structure Ensure that everyone in the business – family or otherwise – has a clear job description and understanding of their role. This will ensure that everyone is focused on what they need to do to make the business operate smoothly.

Ensure consistency and fairness

It’s important that employees are treated fairly to maximise employee engagement. Paying all employees, including family members, at award rates, for example, will ensure that there is no room for hostility or frustration.

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“Working with family can be a successful way to secure trusted employees – after all, they are personally invested in seeing the business thrive.”

to ensure all employees are clear on what they need to be undertaking or achieving.

Seek outside advice

If family members are divided on a business decision, seek independent, thirdparty advice from a professional. This may be a business coach, marketing consultant, accountant or solicitor. The important thing is that they are independent. They can remove themselves from the emotion and help to guide your business decisions with accuracy and impartiality.

Keep family dynamics and situations out of work

Avoid bringing a personal issue to work. It can be hard to work with someone that you’ve had a disagreement with over the mortgage or kids’ report cards, but by keeping personal issues separate from business issues, you can prevent personal feelings impacting business matters.

Maintain clear, regular and efficient communication

If there is business to discuss, don’t bring it up on Sunday morning over brunch. As with any employee or business partnership, schedule proper meetings to discuss critical issues such as performance or operations. Keep notes and minutes to ensure that everyone is on track and on the same page.

• Regular performance reviews that examine any gaps and set plans in place such as training or coaching to help improve performance.

establish a succession plan

Make sure that there is a clear line of succession for the future of the business. This will help all family members to understand their roles and plan for the future in the business or beyond.

What happens when a family member is underperforming in their role? First of all, it is essential that the family member is treated the same as any other employee. Yes, they are family at home, but at work, they are a business employee. This will help you to stay impartial and deal with the situation in a professional manner. Ideally, you wouldn’t want any of your staff to reach the point of being fired for underperformance – family or otherwise. Rather, you should ensure that every staff member is set up for success, via: • Successful onboarding to ensure that the business mission, values and goals are understood. • Adequate training so tasks can be completed. • A clear position description, including any expectations of sales targets or specific tasks,

If, despite this, there are still problems with the family member’s performance, it’s important to take action. There is no doubt that letting an employee go is tough, especially when they are family. It can be tempting to consider ‘carrying’ them for the sake of harmony, but this is not a healthy or smart approach. After all, they are costing your business time and money, and letting others down – including your clients. It is also easy for resentment to build among the rest of the staff, who may be experiencing the added stress of trying to compensate or cover for the underperforming employee. Effectively, the family member has disengaged from the business and the foundations of healthy relationships (confidence, respect and trust) are no longer intact. The reality is that this situation requires leadership, and as the business leader you must take the responsibility to call it out and move the employee on with dignity and respect – as a leader would do with any employee. Franchising specialist FC Business Solutions provides a variety of bespoke franchise solutions for franchisors and franchisees of all sizes. Th is article originally appeared on https://www.fcbs.com.au/blog/

Business Franchise Australia and New Zealand 17

PR O FI L E : Z a r r a ffa’s c o ffee

the uniteD blenDs oF

ZarraFFa’s

for 14 years and had 10 years’ experience in managing staff. These skills and background, combined with my interest in the product and people, were ultimately what drove our move to open the first Cairns store.’ Another pathway to franchisee ownership has been through store management. While a number of franchisees in the group have worked in stores, Trent Moody relocated from the Gold Coast to help open the first Townsville franchise as manager of The Lakes store, but with an eye on one day owning his own store with his business partner Oliver Humphry, who managed the Worongary (Gold Coast) store. When the opportunity arose, both Trent and Oliver relocated to Belmont – situated outside Newcastle, NSW – identifying that the greater Newcastle area had a thriving coffee culture that they believed would respond favourably to Zarraffa’s brand of coffee. ‘We both spent lots of time researching the local market and we were awed by the local coffee culture,’ Mr Moody said. ‘I was lucky enough to be a part of the launch of the Zarraffa’s brand in Townsville, and the reception to well-made, individualised coffee, available to dine in or drive through, was phenomenal.’

New business opportunities and changing careers are key motivators in looking at becoming a franchisee. Zarraffa’s coffee houses a wide range of franchise partners, whose diversity of experience is what makes the Aussie-owned company such a success. Taking determined strides in its New South Wales expansion this year, including the recent opening of the Bankstown store in Sydney, the company has built a solid reputation throughout Queensland and planted roots in the west, all achieved through cohesive partnerships with franchisees. ‘We are lucky to have enjoyed incredible loyalty from within the brand. For example, our Western Australian franchisees, the Meylers – who recently opened our first

purpose-built drive thru in Clarkson, WA – packed up their life in Brisbane to cross the country and run our first WA stores in 2014,’ explained Zarraffa’s founder and managing director Kenton Campbell, who established the thriving coffee franchise business in 1996. The Meylers’ story echoes many within the Zarraffa’s brand who have pursued a new business adventure, whether across the Nullabor or within a closer suburban locale. Joanne and Paul Brierley were former customers who felt that their local area in Cairns needed great drive-through coffee – a need made more obvious after the birth of their twins, Anna and Nathan, and the struggles of getting out of the car with three children in tow. ‘I made an enquiry about franchising with Zarraffa’s at around this time,’ said Mrs Brierley. ‘I had always been really passionate about customer service, and we had wanted a business of our own as a means to secure our family’s future. The stars must have been in alignment, with a drive-thru site already under construction near the Cairns Showgrounds Shopping Centre. ‘Up until then I had worked in government

18 Business Franchise Australia and New Zealand

‘We have always placed high value on upskilling and bringing people through the system; furnishing them with the opportunity to create a sustainable living by doing what they love,’ said Mr Campbell. ‘So it was with great pride that we opened the Belmont North store in late 2017, run by two ex-store managers who had worked tirelessly to build the franchise businesses of other owners, while still maintaining the dream to one day run their very own store.’ As luck would have it, the Belmont store opening coincided with a personal milestone in Trent Moody’s life that increased his understanding of why quality, accessible coffee was so essential to people in the day to day. ‘It was always a great business to be in, with 5am starts, but my partner and I became parents to a baby girl around the time of the store opening and I quickly discovered that broken sleep and late nights can generally be dulled with a great coffee – or two – across the day,’ he joked. ‘We’re almost 18 months into the franchisee journey now, and both Oliver and I wouldn’t have it any other way. It’s a great business to be in – making someone’s day through the simple art of a cup of coffee.’ For franchise opportunities and further details, go to zarraﬀas.com/franchising.

Is open for business! Whatever your background, a passion for coffee is what draws franchisees to our Aussie-owned business. Join the growing network of almost 90 stores with opportunities now available in NSW, regional QLD and WA. For more details, go to zarraffas.com/franchising 124 Distillery Road, Eagleby QLD 4207 07 5500 0800 07 5500 0900 franchise@zarraffas.com

zarraffas.com

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Franchise hacKs to aVoiD the heaDlines Franchise: it’s a word that has unfortunately become synonymous with media scrutiny for bad employee management and treatment. Often it is the isolated stories that make headlines. Australia’s substantial and successful franchise economy is supported by one of the most comprehensive and effective franchising regulatory systems in the world. In our experience, most franchise businesses by far uphold the highest standards.

Contrary to the highly publicised stories of underpayments and poor employee management by franchisees and franchisors, there are untold stories of families who have built generational franchise businesses; of entrepreneurs who have bought a struggling franchise business and turned it into one of the network’s best performers. It is the women who have found the flexibility to balance families and business ownership; the employees of a franchise business who have gone on to become profitable franchisees in their own right; the individuals who have carved out successful careers as franchisees within more than one franchised brand. These stories, and so many more, exemplify the power of franchising to positively transform lives.

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“it’s essential to understand the complexities and fundamentals of becoming an employer and franchise owner if you’re looking to be successful.” Franchising is the engine room of the Australian economy, with almost 80,000 franchise units trading across the nation. The $146 billion sector is responsible for directly employing nearly half a million Australians. Beyond the obvious responsibilities of sales and financials, as a franchise owner you are ultimately responsible for managing employees. Do you have sufficient business

“All employers are required to keep employee records for a minimum of seven years. Good record keeping can also prevent and resolve issues with your employees and help to keep track of your labour costs.”

experience to take on this responsibility, or access to advice and resources that will support you? It’s essential to understand the complexities and fundamentals of becoming an employer and franchise owner if you’re looking to be successful. So, you need to be aware of workplace laws and your obligations as an employer under the Fair Work Act. Publicised examples show what can happen if other imperatives or priorities creep into the franchise relationship. Providing each and every prospective franchisee with the best chance of running a successful business, while acknowledging the impact of external market forces, should be the goal of every franchisor. There are three simple hacks to help you stay on the right side of the law and protect your franchise.

calculate and forecast your labour costs If you are looking to buy a franchise, your due diligence and financial planning should include a calculation of your potential labour costs. Work out what you think your staffing roster will look like each week. If you can, base this off an existing franchisee in a similar market. Use this information to calculate how much you will need to pay each employee. To do this, make sure you seek expert advice to ensure your forecasts are correct and which award or agreement will apply to your business, including the various classifications that will apply to individual employees.

Keep employee records All employers are required to keep employee records for a minimum of seven years. Good record keeping can also prevent and resolve issues with your employees and help to keep track of your labour costs. The maximum penalties for failing to keep employee records or issue payslips have doubled to $63,000 for a company and $12,600 for an individual. The maximum penalty for knowingly making or falsifying employee records has tripled to $630,000 per breach, if the breach is serious and systematic.

“Beyond the obvious responsibilities of sales and financials, as a franchise owner you are ultimately responsible for managing employees. do you have sufficient business experience to take on this responsibility, or access to advice and resources that will support you?” Alivia Hardy | Senior employment relations Adviser | EMPLOYSURE

check your obligations and stay informed As your franchise kicks off and you start employing new workers or adding to the team, you must remain informed about your ongoing obligations to your employees. Ask for expert advice so they can notify you if there are changes in the terms or rates of pay in various awards. It’s also important to become familiar with the National Employment Standards, to ensure that you are meeting the minimum standards and have measures in place to keep updated on regular changes. You can talk to your franchisor, check online resources, or ask an expert workplace adviser. Running a franchise comes with challenges, but becoming an employer means there are many more complexities to consider. You need to manage the relationship with staff and workplace health and safety while simultaneously staying focused on growing your franchise. This is where regular assistance from experts will give your franchise business far more efficiency and build in extra safeguards. Best

practice involves knowing your rights and obligations and knowing who to contact if you need assistance. Alivia Hardy holds a Bachelor of Commerce majoring in Human Resource Management from the University of Wollongong. She has experience in across recruitment, training and development, employee management and employee relations. In her role at Employsure, Alivia is a trusted Adviser to employers, business owners, and franchisees for all employee management and workplace relations matters. Employsure empowers over 24,000 small to medium-sized businesses to succeed with confidence – it provides customised expert advice and documentation with insurance and legal representation across employment relations and health and safety, packaged in one bundle for small and medium franchises and businesses. The cost-eﬀective service allows businesses to budget for complete protection and achieve peace of mind when it comes to employee management and workplace safety. www.employsure.com.au

Business Franchise Australia and New Zealand 21

PR O FI L E : l as er c l i n i c s au sT r a l i a

opporTuniTy

for a perfecT maTch “We’re one big happy family, to be honest, and i love working with trent,’ Samantha says. ‘Wouldn’t change a thing. i enjoy going to work with my husband every day.”

Leadership role Although Trent is working in a very different environment to his earthmoving equipment days, his sales and team-building experience have been invaluable in his new role.

A husband-and-wife couple are loving life and business as the new franchisees of a Laser clinics Australia business in regional New South Wales. Trent Schumi and his wife, Samantha, opened the doors to a Laser Clinics Australia franchise in Port Macquarie in June last year, giving their regional NSW clients access to affordable laser hair removal, skin treatments and cosmetic injectables. ‘Coming from a coal-mining and heavy earthmoving background, where you spend 14 hours a day getting absolutely filthy, to completely flipping it over to a femaledominated industry – it’s just a completely different field,’ Trent admits. ‘But I’m really enjoying the clinic life and being part of such a great team.’

One big family As part of the booming aesthetics industry, Australians are spending more than $1 billion a year on cosmetic treatments. Last year alone, Laser Clinics Australia performed more than 3 million treatments, confirming the franchise’s status as a market leader.

Such success is well known to Samantha, a registered nurse who had worked for a few years as a cosmetic injector at Laser Clinics franchises in Maitland and Erina, NSW, after originally being a client who received laser hair removal treatments. That experience convinced her and Trent to apply to become a husband-and-wife franchisee team, ultimately gaining the rights to the Port Macquarie clinic. ‘I had seen the business model and had no hesitation in investing in Laser Clinics,’ Samantha says. ‘We haven’t looked back.’ The couple have three young children and live on a 20-acre rural property half an hour from the clinic. The business marriage is working well, too. Trent is the nominated manager and franchisee responsible for the day-to-day running of the clinic and leading the team and sales; co-owner Samantha leads the cosmetic injector team. ‘And we don’t tend to cross those lines unless we really need to,’ she says. The formula is clearly working, with the Schumi pair recently being named Laser Clinics Australia Rookies of the Year. ‘We’re one big happy family, to be honest, and I love working with Trent,’ Samantha says. ‘Wouldn’t change a thing. I enjoy going to work with my husband every day.’

22 Business Franchise Australia and New Zealand

He believes team culture is the single most important factor driving the success of the Port Macquarie clinic, which has attracted a strong clientele from day one. ‘That’s one of my passions – to be able to lead teams to success,’ he says. Trent says the presence of other male franchisees in the Laser Clinics group shows that it is not just a sector for women. ‘Of course, it’s quite a challenge to come across and learn different methods of communication with female staff and clients. I’ve learnt more about myself in the past 10 months and it’s been one of the best experiences of my life. I’d encourage other males to look at the opportunities.’ On the back of a diverse mix of franchisees, Laser Clinics Australia has thrived since its launch in 2008. Most recently, it was named the Franchise Council of Australia Emerging Franchisor for 2018; it was ranked in the top 50 of the Smart50 Awards last year; and in 2016 it took out Smart Company’s Smart50 Top Franchise award. Samantha believes the Laser Clinics model also provides a pathway for cosmetic injectors and therapists to become franchisees. ‘Laser Clinics is so supportive of career progression, so it gives staff something to really aim for.’ To find out more about becoming a Laser Clinics Franchise Partner, please contact Fiona Harcourt or Liz Seeto at: franchising@laserclinics.com.au www.laserclinics.com.au/franchise

Your success is our success. You are just the person we are looking for. We are the global leaders in the booming laser, skin and cosmetic injectables industry, since 2008. And we want people like you. Spirited. Driven. Unstoppable. With our unique 50/50 franchise partnership, we’re with you, working together and supporting each other on the pathway to success. So if you want to run your own successful franchise, be your own boss and take control of your future then let us help you turn your dream into a plan.

Why partner with us. • • • • • • • • • • •

Guaranteed $100k Salary per annum Award-winning Growth Turn-Key set up with state of the art equipment and design Booming Aesthetics Industry Market Leading Brand State of the art fit-outs On-going training on all products and services Marketing initiatives at the national and local clinic level Human Resource support Recruitment and training of cosmetic injectors Ongoing IT support and a full suite of cloud-based business tools

Let’s do this! Visit laserclinics.com.au/franchise for more information. Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272.

We’re with you. Business Franchise Australia and New Zealand 23

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The Human Dimension of Successful Franchising There are two major headaches for the majority of small business owners. Cash flow is the obvious one; ‘people woe’ is usually the other. When it comes to the latter, fixing the fundamentals first is vital. Workplace compliance is a complex and constantly changing beast, and this can be a huge challenge for franchisees. While there are always exceptions to the rule, in my experience franchisees absolutely want

to meet – and usually exceed – minimum statutory compliance requirements. Unfortunately, many lack the know-how or structure to do it properly. Coupled with the focus on running the sales and operations of the business to ensure cash is coming in, this means that their people strategy is often neglected. Until recently, such an approach would have simply stagnated opportunities for growth. Now, it risks crippling a business. However, good people strategies are about more than legal compliance. For a franchising company, a consistent, positive employment culture throughout the business can be beneficial for both franchisor and franchisees, and vital to their prosperity.

24 Business Franchise Australia and New Zealand

The risks of not of getting the basics right Until the end of last year, I was the HR Vice President of Pandora Jewellery for Australia and New Zealand. I joined the business when it was a small, family-owned operation which was embarking on an ambitious franchising journey. By the time I left, the franchise network had grown to more than 100 stores, complemented by 40 owner-operated stores and successful wholesale and eCommerce channels. Before Pandora, I was the HR Manager at Freedom Furniture, another well-loved Australian and New Zealand franchised business. I recently decided to make the

bold move of leaving corporate life to fulfil a lifelong ambition of starting my own HR consultancy business. So I have a lot of empathy with the challenges that franchisees face when it comes to managing people and, in particular, workplace laws. My perspective has been further endorsed by four years’ standing as a council member of the Australian Retailers Association, whose membership is made up of thousands of small businesses – many of whom are franchisees. With my former franchisor hat on, I can say that the value of franchisees getting access to professional HR expertise cannot be underestimated. The Vulnerable Workers Act has changed the rules of the game for franchisors and franchisees alike. Organisations now face potential penalties of up to $126,000 per contravention for individuals and $630,000 for corporations. The risks are now too great to procrastinate, to leave people strategy down the priority list or to brush it under the carpet altogether. I often compare good HR support to a pair of noise-cancelling headphones. Providing sound advice on workplace compliance – such as employment contracts, policies and procedures as well as practical telephone and face-to-face support – offers franchisees peace of mind and a more enjoyable and relaxing journey to success. An HR partner can help franchisors and franchisees alike to deal with challenging situations that arise during the whole employment life cycle.

the rewards of a good franchisor/ franchisee relationship Gone are the days when a franchisor can simply leave a partner to muddle through the people stuff themselves and hope they get it right. The relationship has changed completely. These days, a good franchisor will proactively rise to the responsibility of educating and auditing their network and do everything reasonably possible to help their partners when it comes to workplace compliance. At the same time, franchisees need to accept that the franchisor needs to poke their nose into their business, not least their HR practices, in ways they have never done before. While this intervention might seem onerous and expensive for the franchisor and unnecessarily intrusive for the franchisee, when both parties understand the ‘why’ it makes perfect sense. At the end of the day, everyone wins when the network is working together to protect

“For a franchising company, a consistent, positive employment culture throughout the business can be beneficial for both franchisor and franchisees, and vital to their prosperity. ” Mhairi Holway | director | THE HR DEPT

the business model. Unfortunately, the reverse is also true. A rogue franchisee can have disastrous consequences for the whole network.

the benefits of a consistent employment culture Even when franchisors and franchisees have a robust compliance framework in place, they can often stumble on the more strategic hurdle: how to optimise their workforce by providing staff with an employment experience that is so irresistible, they never want to leave. Businesses of all kinds can reap the rewards of this investment in their people. Being a great employer does not come from providing fancy perks and gimmicks. The key is establishing a healthy and supportive workplace culture that recognises and values the contribution of individuals in a range of meaningful and unique ways relevant to aspirations of the business and its staff. And it doesn’t have to be expensive or complex. Partnering with business owners to put in place proactive HR initiatives to help them find, develop, reward, engage and retain the best people is where the magic happens. As a small business owner myself, I fully appreciate how impossible it is to be expert at everything, and time is a precious and scarce commodity. Due to the size or nature of the business, a lot of franchisees do not need or cannot afford the luxury of in-house professional HR expertise to assist them. So there is great benefit in seeking local, outsourced support from a provider that really ‘gets’ their business and feels like a part of it, without actually being a part of it.

values are at the heart of the franchising marriage I have experienced first-hand the difference a genuinely supportive and values-based franchise network can make. During my time at Pandora, the business won accolades including International Franchisor of the Year (FCA) and Retailer of the Year (ARA), where the culture and values of the business were a key component of the award assessment criteria.

The overriding consideration for me when exploring the franchise path was the franchisor’s values. This might sound like a fluff y HR thing to say, but I see buying a franchise as a long-term commitment, not dissimilar to entering a marriage. Franchisees should bear this in mind when they are exploring where to put their resources for their new venture. And franchisors should recognise that the culture of any business comes from the upper levels and filters down, in this case to franchisees and their interactions with end users or customers of their products and services. Ideally there needs to be a strong compatibility across the board in terms of values, with trust being at the heart of the relationship. A strong relationship between franchisor and franchisee will help create a brand that can be trusted. In my case, I found that The HR Dept had a clearly articulated set of values which mirrored my own. Other essential ingredients I was looking for in a franchisor were their ability to adapt to change, a commitment to transparency, and evidence of how highly they valued the support and success of their franchisees. As a former employee of a franchisor, I can see the world of franchising and the joys and tribulations of this ‘business marriage’ from both sides of the aisle. It’s all about mutual interdependence based on appreciation and respect. As the old song goes, ‘Love and marriage go together like a horse and carriage…You can’t have one without the other’. When both franchisee and franchisor truly understand this, it bodes well for a happy future. Mhairi Holway is the director and owner of The HR Dept Northern Beaches, based in Sydney. The HR Dept is a franchise network providing small and medium-sized businesses with local, tailored and personal HR services at the fraction of the cost of having an in-house team. To learn more about the HR Dept visit www.hrdept.com.au.

Business Franchise Australia and New Zealand 25

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Anytime Fitness embraces cloud-based WHS platform Australian franchise companies without a set solution for work health and safety (WHS) in place are faced with the potential of three major issues were an incident, a complaint or even a significant ‘near miss’ to occur: 1. The franchisor and franchisee open themselves up to serious litigation and fines. 2. Potential short-term, long-term or indefinite loss of valuable employees who have the skills, training, and enthusiasm to keep the business running smoothly. 3. Loss of good brand reputation if the incident is reported to a state WorkSafe regulator, who then publicises the shortcoming in the media. Anytime Fitness is a rapidly growing, worldwide franchise group consisting of over 4000 clubs – 500 of them in Australia. It operates on a 24/7 business model and provides its members with around-the-clock access. In 2014, Anytime Australia’s in-house counsel identified the PCBU LEGAL responsibility that franchisors and franchisees must maintain to provide appropriate work health and safety (WHS) systems.

“Anytime is ensuring that safety is kept a top priority by having both operational and compliance teams liaise with Safety Navigator’s support teams to produce and distribute instructional videos.”

26 Business Franchise Australia and New Zealand

“We have found Safety Navigator’s cloud-based system an extremely valuable tool in maintaining a safe environment for our members. By maintaining strong communication with franchisees, the Anytime support office and Safety Navigator can align to achieve higher standards in WHS than ever before.” Andrew Gow, performance coach team Leader, Anytime Fitness Australia

Anytime’s in-house counsel were aware of these risks, but at the same time wanted a solution that was easy to implement and manage. Anytime reached out to Safety Navigator to discuss how a cloud-based health and safety system may cover their WHS responsibilities.

In place for the last four years and with over 500 clubs now using the platform, Anytime Safety is a customised, cloud-based health and safety system that Anytime clubs use to manage their WHS responsibilities quickly and efficiently – about 20 minutes of data input per month for a franchisee.

Anytime liked the simplicity and ease of use, power of reporting, and workflow of Safety Navigator. However, they also wanted to ensure the platform suited the work environment of a busy fitness club.

The system includes a built-in ‘risk rating’ for clubs and support office to measure safety performance. It also includes scheduled email reminders for franchisees to take actions (inspections, AED checks, policy reviews), easy dashboard reporting for the franchisors and unlimited support provided by Safety Navigator.

So they did the following: • Engaged with key franchisees to get input on how Safety Navigator would work in the fitness club environment. This resulted in a list of requirements, which were then converted into system customisations made to suit Anytime’s processes. • Inserted a ‘Safety Levy’ into Franchise Agreements to cover the cost of the system and support for all franchisees. Economies of scale meant that levy was less than a cup of coffee per day, per club. • Reviewed system customisations. • Entrusted the Safety Navigator team to roll the system out to all franchisees and provide ongoing support.

However, Anytime Fitness realised that health and safety is not just a ‘switch’ to be turned on and left to run. The support office has ensured constant buy-in from franchisees for Anytime Safety by setting KPIs based on risk ratings, as well as consistently inviting franchisees to voice feedback on changes and updates required to further improve the service. Through collaboration with Anytime’s business performance coaching and compliance teams, there has been an instrumental shift in the ‘ownership of safety’

message throughout the organisation. Anytime is ensuring that safety is kept a top priority by having both operational and compliance teams liaise with Safety Navigator’s support teams to produce and distribute instructional videos. They also host round-table discussions with franchisees to push high performance through callouts, email campaigns, and more. ‘We have found Safety Navigator’s cloudbased system an extremely valuable tool in maintaining a safe environment for our members,’ said Andrew Gow, Performance Coach Team Leader at Anytime Fitness Australia. ‘By maintaining strong communication with franchisees, the Anytime support office and Safety Navigator can align to achieve higher standards in WHS than ever before.’ Safety Navigator delivers cloud-based safety systems and support to thousands of Australian and New Zealand businesses, reducing the number of workplace incidents by simplifying compliance. https://www.safetynavigator.com.au/

Business Franchise Australia and New Zealand 27

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GET THE APP C OV ER STO RY: I n X p re s s

INXPRESS:

FIRST CLASS SERVICE, WORLD CLASS SHIPPING, AND A SMART INVESTMENT InXpress welcomes new Asia Pacific CEO Marcel Lal joined InXpress in January 2018 as the General Manager for Australia and New Zealand, with a background of more than 25 years in management and marketing. After just over a year in the GM role, he rose to the position of Asia Pacific CEO in April 2019. ‘It’s only a recent change, but I’m enjoying the transition,’ says Mr Lal. ‘I feel humbled to be moving into the Asia Pacific lead role. While there are six country operations to evolve and grow in this region, I will still be heavily involved with Australia as our third largest operation globally. ‘We’ve brought on an experienced leader from the logistics industry as our GM for Australia and New Zealand in James Buck, and James and I are already working closely together.’ This new development for the Asia Pacific region comes as the previous CEO Lindsay Birley was appointed as the InXpress global Chief Strategy Officer, and the shipping and logistics company goes from strength to strength. InXpress is celebrating its 20th year anniversary this year. Since its humble beginnings in the UK in 1999, InXpress has grown and expanded into the US and other countries around the world. Australia is now in its 11th year, with consistent year-on-year growth, and is one of 14 countries in the InXpress global operation.

12 Business Franchise Australia and New Zealand

Taking the stress out of shipping InXpress offers its customers peace of mind when it comes to managing all their shipping and delivery needs. ‘We’re essentially providing SMEs with an ease of doing business,’ Mr Lal explains. ‘We save thousands of Australian businesses time and money so they can focus on doing what they do best, without having to worry about their freight requirements.’

Celebrating franchisee success Mr Lal can attest to a good relationship at InXpress between the company and its franchisees. ‘I feel that the overall relationship is fairly strong, and the open communication and year-on-year growth from the majority of our franchisees demonstrates this,’ he says. ‘However, we acknowledge and invite constructive criticism, as we can always improve and evolve.’

T H E

“The company’s global buying strength and personalised service means that business customers receive competitive rates through an automated online platform, with prompt support from a local consultant.”

M A G AKey Z advice I N Efor prospective F O R franchisees

F R A N C H I S E E S VOL 13 ISSUE 04 MAY/JUNE 2019

ZEALAND

Transparency at the heart of successful growth InXpress, like all franchised businesses, is not immune to the challenges faced by the franchising industry in Australia. ‘Certainly there has been an unfair perception of Australian franchising recently, where a very small number of bad practices has impacted the overwhelmingly excellent work done by the large majority of franchisors,’ Mr Lal concedes. ‘It can be hard when that 99% of good work is overshadowed.’

Local and regional opportunities

now available A SMART INVESTMENT

THE HUMAN DIMENSION OF

SUCCESSFUL FRANCHISING

This perception can have an impact on initial franchise enquiries, but Mr Lal is confident that recruitment at InXpress remains strong. ‘At InXpress we feel very comfortable with our extensive franchise recruitment process,’ he says.

The company’s policy of open communication and transparency has served them well, on both sides of the franchisor–franchisee relationship: ‘It is not only beneficial to prospective franchisees, but also to us, to provide full disclosure and the opportunity for them to assess our franchise system in detail.’

THE LONE ENTREPRENEUR BUYING A FRANCHISE?

IF IT DOESN’T ADD UP, DON’T SIGN UP SPECIAL FEATURE

BUSINESS SERVICES $6.95 (AUD), $7.95 (NZ) inc. GST.

FINANCIAL & LEGAL ADVICE FINANCIA

LATEST LAT A EST NEWS AT

FRANCHISE DIRECTORY ORY

www.businessfranchiseaustralia.com.au 28 Business Franchise Australia and New Zealand

auSTRalia & NEW ZEalaNd

franchisor B u S i N E S S

VOL 07 ISSUE 02, 2019

MaRSh & MahER

RiChMONd BENNiSON:

MORE THAN JUST LEGAL ADVICE

aCCREdiTaTiON:

TAKING YOUR FRANCHISE NETWORK TO THE NEXT LEVEL

ThE EffiCiENT OuTSOuRCER THE CHANGING FACE OF AUSTRALIAN

fRaNChiSE RECRuiTMENT

Business Franchise Australia and New Zealand 29

NEWSitems

Entries are now open for the Franchise Marketing Awards 2019! Could you be a winner?

1 July deadline for Single Touch Payroll

The Franchise Marketing Awards (FMAs), some of the industry’s most highly coveted accolades, are now open for international entries.

Regardless of whether you’re a franchisee or a franchisor, if you have 19 or fewer employees you are required to implement Single Touch Payroll (STP) by 1 July 2019.

Franchisors can enter the awards in one or more of the following categories:

The Australian Taxation Office (ATO) requires greater visibility into employer payrolls to ensure that they pay their PAYG withholding amounts and meet SGC superannuation obligations. The benefit to employers is also significant, saving time at the end of the financial year because they will no longer need to issue group certificates to employees.

• Best Print Advert

Some franchises have already taken up the STP challenge, with the likes of Retail Zoo (Boost Juice, Salsas Fresh Mex) and Soul Origin already rolling out their STP setup.

• Best Overall Marketing Campaign

So, what does it mean for those who haven’t started the process yet? For franchisors Here are three hot tips on how franchisors can prepare for successful STP implementation: 1. Educate, educate, educate your franchisees all about STP 2. Direct them to reach out to their bookkeeper, advisor or accountant for help 3. Ensure they have STP-ready accounting software. Part of the education process is understanding what it all means and how it will impact your franchise. Your franchisees will need to review all their employee payroll information. You should also advise them to speak with their employees about the change and why they should set up a myGov account. For many employers and payroll officers, getting a business STP-compliant means that they’ll need to be up to speed with system updates, and learn how to use them for STP. Their advisor can guide them through with ease if they don’t have internal resources to do so. The FCA’s advice is: Don’t let your franchise run into trouble with the ATO because your processes or your franchisees’ processes aren’t up to scratch. Get in touch with your advisor and begin discussing your STP requirements and payroll systems today. For an in-depth look at Single Touch Payroll, head to page 76 for an expert advice article by John Shepherd of the ATO.

30 Business Franchisor

• Best Website

• Best PR Campaign • Best Online Marketing Campaign • Best Franchisee Marketing Support

The awards acknowledge and celebrate innovative and effective marketing campaigns and tools provided to franchisees. They evaluate the design, execution and results of marketing programs from numerous franchise brands and pick out the best in the business. With prospective franchisees increasingly prioritising marketing success, brand strength and dedicated franchisee support systems, brands need to stand out from their competitors to be worthy of investment. In this highly competitive market, entering the FMAs gives franchisors the chance to be formally recognised for their achievements. It gives their brand an edge over a rival investment opportunity and boosts their chances of recruitment success. Previous winners include Snap-on Tools, easyGym, The Creation Station, McDonald’s, ChipsAway and many more. Neil Apter, marketing manager at Expense Reduction Analysts (ERA), which won Best Overall Marketing Campaign 2018, commented on the benefits of entering the FMAs: ‘The award further confirmed to prospective franchisees that when it comes to delivering high quality, usable marketing collateral that delivers clients, we’re leading the way in the franchise industry.’ The FMAs, sponsored by Business Franchise magazine, are open to all franchisors who operate an ethical franchise and can demonstrate marketing excellence. The awards are judged by an independent panel of industry experts. The judges look for entries that display innovative practices and effective marketing support offered by franchisors to their franchisees. The deadline for entries is Friday 5 July 2019 at 5pm. Download the entry criteria and entry form today and start preparing your winning entries! https://www.franchiseinfo.co.uk/franchise-marketing-awards

Music proves increasingly crucial in the future of marketing

Rise of personal smartphones in the service industry highlights the need for Bring Your Own Device (BYOD) policies

A new study reveals that more than half of casual employees say their current role prevents them from maximizing their full potential at work. The research from WorkJam, a leading digital workplace platform, found that 61 per cent of frustrated employees cited scheduling and communication pain points as reasons for leaving. The study also found that the workers had little resistance to the idea of implementing a Bring Your Own Device (BYOD) policy at work. Younger Australians place more value on music as a key element of marketing than older generations, according to research from audio branding specialist PHMG. In the study, which surveyed 1000 Australian consumers, 75 per cent of 18 to 24-year-olds and 62 per cent of those under 45 say that music helps them feel more connected to a brand, compared to just 41 per cent of those aged 55 and over. Daniel Lafferty, Director of Music and Voice at PHMG, said: ‘As the expectations of audiences shift, it’s important that organisations don’t get left behind. Millennials place greater importance on music in marketing, so businesses should be planning now to cater for future success with the consumers of today and tomorrow. We live in an increasingly multimedia world where audio is fast becoming the modus operandi, from Alexa and Siri to voice-driven car infotainment, so how a brand sounds is just as important as how it looks.’ ‘It’s clear from the research that marketing departments need to think how they can integrate audio into the marketing mix,’ added Lafferty. ‘Younger consumers engage better with brands that carefully consider audio, and make assumptions about the professionalism and reliability of the brand according to the sounds they hear. ‘If businesses want to ensure they attract and retain the Millennial and Generation Z markets, they need to focus on the audio just as much as the visuals in their campaigns.’

The study polled over 1000 US-based hourly employees and employers across the retail, hospitality, logistics, healthcare, and banking industries to determine sentiment around BYOD policies. Results showed that 57 per cent of millennials would prefer to use their personal mobile devices to access information such as schedules and training materials. WorkJam also found that more than two thirds (69 per cent) of employees believe that with the right mobile app, they’d have an easier time picking up shifts that accommodate their schedules. According to Steven Kramer, president and CEO of WorkJam, these findings should call attention to the impact that implementing a BYOD workplace policy can have when it comes to building a more engaged and productive workforce. ‘It’s never been more imperative that employers put the power of communication and scheduling into employees’ hands,’ Kramer said. A digital workplace platform can help employers to boost employee productivity, increase transparency throughout the company, and improve the employee experience by harnessing the power of their personal devices. For example, getting in touch with a manager is only a few taps away, and important training materials can be accessed whether the employee is at home or work. This gives employees greater control over their work-life balance, boosting morale and lowering instances of turnover.

PHMG is the world’s largest audio branding agency with more than 32,000 clients in 39 countries worldwide.

Organisations that make this investment now can get ahead of the competition while enhancing culture and creating opportunities for increased efficiency. ‘It’s no longer a question of whether organisations should adopt a digital workplace policy,’ Kramer said. ‘It’s about when they should make the change.’

https://www.phmg.com/

https://www.workjam.com/

Business Franchisor 31

COVER STORY: Marsh & Maher Richmond Bennison

Marsh & Maher Richmond Bennison: more than just legal advice

Franchise law has always been a particular passion of mine, and I still get excited when a new business opportunity comes along.”

Robert also had visions of playing professional football (soccer), which he played at the State League level, and of being a rock star, as he played guitar and wrote songs with his brother Tom. But a stable profession was needed, the Toth family having migrated from Hungary in 1958

Robert Toth, partner at Marsh & Maher Richmond Bennison (MMRB), is a franchising legal specialist and an accredited business law specialist with a wealth of expertise.

with nothing.

It’s been quite a journey for Robert over the past four decades – from working in criminal law and visiting clients in Pentridge prison, to a general practice in St Kilda for several years and then establishing his own firm, Toth & Co, in Elsternwick in 1987.

fixed-fee practices.

Early days – Ted’s Training Before and during his legal studies, Robert worked with his brother Ted in the iconic Ted’s Cameras stores. Yes, Ted is his brother, and this is where Robert learnt about business, marketing and branding. The hands-on retail experience at Ted’s over many years stood Robert in good stead when he established his own practice, and also when it came to advising business clients.

32 Business Franchisor

Transparency and flexibility for clients Once Robert began practising law, with his retail background he quickly realised that clients didn’t like the hourly rates and billing methods of lawyers, and he was one of the first to bring in He also established a practice early on that he continues today – the practice of giving clients fee estimates based on the scope of work. ‘I felt this way we could be more transparent with our clients,’ Robert says. ‘Our clients could also budget properly for their costs, so they didn’t get that surprise bill at the end.’ Clients are updated during the course of their file, with interim bills, flexible fee structures and payment options. ‘It’s all about transparency,’ says Robert, ‘so we can get on with the work and our clients can focus on their business. ‘We look to supporting our clients over the long term and through the good and the tough times.’

A growing practice Toth & Co grew, as Robert says, ‘to a point where it was too big to be small’. While acting for Philip Murphy Wine & Spirits in a huge case involving the Australian Liquor Group Ltd and Coles Myer, Robert decided to merge his practice in 2003 with another iconic Melbourne firm, Wisewould’s. Robert headed up their corporate and commercial practice and brought across his franchise practice, and Wisewould’s became well known as a franchise practice. As Robert says, ‘I had to do something, otherwise I would have been a headline in the Herald Sun: “Lawyer found dead of stress at his desk”!’ After 12 years as a partner with Wisewould’s, Robert joined MMRB in late 2014 as a partner, again bringing across his established franchise practice and industry reputation to the firm.

A passion for franchising Throughout his practice, Robert has maintained a keen interest in business and franchising and advised many clients in the sector, understanding the issues that arise for franchisors and franchisees. As Robert says, ‘Franchise law has always been a particular passion of mine, and I still get excited when a new business opportunity comes along, and then seeing that business roll out to the market.’

Robert works for overseas franchisors and companies entering the Australian market, and is a local agent and resident director of a number of overseas companies. He also assists Australian companies to expand overseas via his international connections and membership of the International Franchise Lawyers Association (IFLA), a worldwide network of franchise and licensing lawyers.

Giving back to the community

We have a strong network of allied consultants who can assist and support our clients to establish their business model, from financial modelling and feasibility to marketing branding and systems support.” A specialist legal team The MMRB Franchise Licensing and Retail Group is a dynamic group of lawyers with expertise in intellectual property, consumer and employment

Giving back is a key value of Robert’s practice, having acted pro bono for 17 years for the Bonnie Babes Foundation, and been a director of the Elwood Community Bank for over 15 years, under franchise with the Adelaide and Bendigo Bank.

law.

More recently, Robert joined the board of a notfor-profit (NFP) assisting disadvantaged youth, and is a director of Greater Good International, a company that supports Aid Hub International. Aid Hub is a worldwide NFP that supports NGOs around the world to deliver on the United Nations sustainable development goals, which, as Robert says, will hopefully ensure that there continues to be a liveable planet for our grandchildren to enjoy in the future!

branding and systems support,’ says Robert. ‘Our

‘We also have a strong network of allied consultants who can assist and support our clients to establish their business model, from financial modelling and feasibility to marketing clients can therefore come to us as one-stop shop to get their model established.’ The firm is also a member and strong supporter of the Franchise Council of Australia (FCA) and the US Commercial Service. Robert’s unique experience in business and retail means he not only knows the law, but he can offer business and market knowledge.

‘We know what’s going on in the world of franchising,’ Robert says. ‘This is knowledge and experience your local lawyer around the corner may not have.’ ‘Recently a client looking to develop their business in the childcare sector came to me, and when I told them that I actually have equity in the freehold of childcare centres with my brothers, he said, “Wow – I didn’t think I would find a lawyer who was actually involved in the sector”.’ Being in business not only as a lawyer really does bring added skills and know-how to the advice Robert can bring to establishing or setting up a business enterprise.

Franchising industry experience Robert has worked for over 35 years assisting franchisors, franchisees and master franchisees,

Business Franchisor 33

for some clients and founders, franchising is just not the right model, and we talk about these matters openly at the first sessions.”

and is regularly involved in mediation under the Franchising Code and also in general commercial disputes. He is a great advocate of being direct and trying to resolve disputes without litigation. ‘Picking up the phone and talking to the opposing lawyer up front often cuts through the issues,’ says Robert. ‘It helps us understand how close or far apart the parties really are, and if there are any other agendas going on.’ Robert has also written numerous articles based on his expertise, such as ‘Why can’t I sue my franchisor?’, ‘Help get me outta here’ and ‘Do class actions work in franchising?’, which are regularly published online and in journals.

ThE modErn franchisE markET Robert has seen the Australian franchising landscape change significantly since the 1980s. ‘Back then, there was little sophistication; no Franchising Code of Conduct as we know it today, and little by way of consumer law protection,’ he explains. ‘People bought into a franchise, and it either worked or it didn’t. If it didn’t work, the franchisor generally disappeared, or simply carried on regardless with very little accountability.’

Robert states: ‘It is more of a horizontal relationship, rather than the traditional vertical relationship where the franchisor has total control over the franchisee. ‘The Laser Clinic’s franchise model is good example of how branchising can work well. I am not saying it is suitable to all, and this is where our expertise can assist clients, along with their advisors and consultants. ‘The branchise model also addresses current financial issues in the sector following the banking royal commission. Banks have tightened lending policies and indicated they will not lend to franchisees where the only security is the equity in their home.

‘These days we are seeing more of a partnership developing between franchisors and franchisees,’ Robert says. ‘We are looking to new and relevant business models for the modern market, including innovative models such as branchising.’

‘Branchising means the franchisor contributes to

‘We discuss whether franchising is the right model for expansion. For some clients and founders it is just not the right model and we talk about these matters openly at the first sessions.’

franchisor.’

The term ‘branchising’ describes a system in which a franchisor and franchisee enter into a partnership or shareholding arrangement, with the franchisor taking equity – usually the majority equity stake in the franchise – with the franchisee.

34 Business Franchisor

the set-up costs of the franchise making it more affordable. The franchisor has a vested interest to ensure that the business is successful, and the franchisee feels more readily supported by the

ThE franchisE indusTry Today Robert has seen the franchise sector change over the past 40 years into a much more controlled environment, with the Code review in 2014 and now the parliamentary inquiry into franchising in 2019, although the recommendations are yet to be introduced.

‘We are living in a different world of risk and reward for franchisors and franchisees,’ Robert says. ‘The multitude of regulators, such as the ACCC, Australian Securities and Investment Commission (ASIC) and the Fair Work Ombudsman, all have greater funding and powers to ensure compliance by franchisors and business alike. So getting the right expert advice from specialist lawyers is even more important for all in the sector. ‘The retail sector has also undergone huge change over this period. With restricted lending by banks, funding franchisees into the business is more of a challenge. Franchisors need to make entry more accessible and affordable, and also ensure the model works for their franchisees to avoid disputes arising.’

a TrusTEd advisEr Robert and the Franchise Licensing and Retail Group at MMRB look to establishing long and supportive relationships with their clients. They provide more than just legal advice, with their experience and specialised expertise in all aspects of business, retail and franchising. For more information, contact Marsh & Maher Richmond Bennison at: 03 9604 9400 (east Melbourne) 03 9580 8311 (Mentone) enquiries@mmrb.com.au www.mmrb.com.au

Business Franchise Australia and New Zealand 35

expert advice: Corina Vucic

The efficient outsourcer Outsourcing professional services is a great way to keep a franchise head office streamlined â&#x20AC;&#x201C; on budget, if staffing overheads are proving challenging; flexible to adjust to changing business conditions; and on track of critical projects.

36 Business Franchisor

While outsourcing everything in an office is not possible, and potentially not always advisable depending on the needs of clients, staff and franchisees, there are key benefits to be gained by bringing in external experts in areas such as finance, marketing, information technology or administration far beyond the practical and financial.

going to be up-to-date with the latest trends,

Outside ideas can inject fresh thinking and new ways of doing things into your business. For example, an expert social media consultant is

Before engaging a third-party provider, itâ&#x20AC;&#x2122;s

data and platforms. Freelancers, consultants and third-party businesses can bring a fresh approach and recommendations, while freeing up time for your employees to work on other projects within their expertise and job descriptions. important to set clear goals in what you are hoping they will achieve for your business. Are

corina vucic is the Director of Fc Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level. Whatever their goals, corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.

before engaging a third-party provider, it’s important to set clear goals in what you are hoping they will achieve for your business.”

you merely seeking them to undertake a task and depart – for example, writing fresh website copy? Alternatively, are you seeking them to run something on a day-to-day basis, such as bookkeeping services, to free up administration time from your team so they can focus on other tasks? Perhaps you are working on a critical project and want the business to build something, such as a website, software or strategy. From there, do you want the third party to run this new website or implement the strategy, or to hand it back to your employees for ongoing, day-to-day management? Depending on your goals with the process, you will need to ensure that this is made clear to the third-party business and steps are taken within that process to ensure that you are getting what you need for the short, medium and longer term. Let’s take the example of building a website. You may want a new website with specific capabilities, new content and original design. However, once the site is created, you ideally want your central employees to be the ones updating and maintaining it. As part of working with a third party, you need to be assured that the website, once completed, can be regularly and quickly updated by your own staff –any training or resources should be provided, and support mechanisms put in place to ensure that the site can be customised as needed. Without these assurances, you may be left with a website that is unworkable unless you continue to engage the designers, which may be more expensive and time-consuming than you had initially budgeted. Alternatively, in the case of a bookkeeper, this may be ongoing work that is outsourced. You are not expecting the bookkeeper to teach your staff how to order receipts and account for payments; you are paying for the bookkeeper to handle this task on your behalf, so their processes, templates, equipment or software may be of little concern to you. You anticipate it to be an ongoing

relationship and you are paying for their time and expertise over the longer term. It’s vital to know the difference between these types of outsourcing so you can set clear goals, guidelines and processes. In addition to core goals that are expressly communicated by way of contract or agreements with third-party providers, it’s important to continually assess the relationship to ensure that value is still being provided. Regularly check any briefs or arrangements to ensure that it is still what you require, and adjust if necessary. By setting clear goals and monitoring the

practicalities of the arrangement on an ongoing basis, you can help ensure that outsourcing is handled efficiently, effectively and adds value to your business. To discuss how corina’s expertise can help take your business to new heights, contact: 03 9533 0028 cv@fcbs.com.au https://www.fcbs.com.au

Business Franchisor 37

expert advice: James Scurr

Accreditation: Taking your franchise network to the next level

Despite the ever-changing challenges faced by franchisors in the Australian market, there are two consistent barriers to overcome: finding quality franchisees and equipping them with finance. Accreditation is a tool that can help franchisors to overcome both. Accreditation programs by lenders are an important part of the finance offerings available to the franchise network. Despite the number

38 Business Franchisor

of lenders operating within this space, access to finance can still be a major barrier for new prospects and can dampen the potential growth rate of franchise networks. Gaining accreditation with a range of bank and non-bank lenders is something that franchisors can do to help incoming and existing partners overcome this barrier. Accreditation ultimately establishes a framework to support long-term growth. Accreditation programs take into consideration how strong a franchise network is as a whole, and then, based on this assessment, provide preapproved funding up to a certain amount for both new and existing franchise partners. Although this can be a somewhat time-consuming process for the franchisor, it is an important step for any growing network and can become the

cornerstone of their franchise finance strategy. Prior to the rise in popularity of alternative lenders, bank accreditations were a staple of the franchise industry. However, Australiaâ&#x20AC;&#x2122;s lending landscape has seen a tumultuous time through the banking royal commission, and as a result the industry has seen a diversification of lenders and finance offerings. Now most banks and alternative lenders offer some form of accreditation program to support the franchise industry, resulting in a wider range of choices. Accreditation is not a one-size-fits-all solution, and franchisors should seek accreditation with more than one lender to ensure that their franchisees have a range of options to suit their needs.

While bank accreditation is often the first choice, stricter requirements mean that this is out of reach for some franchise networks. Bank accreditation programs are often limited to franchise networks of at least 50 units, and place restrictions on the amount of the purchase price they will lend, capping it at 50 per cent. Unfortunately, this makes it an unrealistic option for franchises that are still in the growth phase or operating a smaller network. In addition to this, many traditional lenders have shied away from funding small business, franchises included, preferring to lend in traditionally less risky markets. Despite difficulties with more traditional lenders, many franchise networks have found success in opting to explore accreditation with an alternative provider. Non-traditional lenders have seen heavy adoption rates in both the consumer and commercial space, as their more flexible offerings allow for unique funding solutions to fit their customers’ needs. Their willingness to take on a higher risk makes them accessible to small business owners, who are seeking the ability to borrow smaller amounts on more flexible terms. Non-traditional lenders have also seen praise for their high levels of transparency – something that has become highly valued by consumers as mistrust of traditional lenders grows. While some franchisors may see accreditation as a tool that only helps incoming franchise partners, this is certainly not the case. Existing franchisees face new expenses throughout the life of their business, and the ability to access quick and easy funding through accreditation allows them to commit to refurbishments, equipment upgrades and expansions without putting their capital at risk. Providing franchise partners with simple access to finance forms a platform to drive internal growth, giving existing franchisees the tools they need to take advantage of new opportunities, without the deterrent of lengthy applications and approval times. Putting in place an accreditation program can also encourage adoption of franchisor initiatives such as new equipment rollouts, new store designs and rebranding activities, as finance is pre-approved. Holding an accreditation with one or more lenders also acts as a key selling point throughout the recruitment process. Accreditation adds to the credibility of a franchise brand and reflects the success of the network overall. Having the

James Scurr has extensive franchising and small business experience, spending almost a decade as a successful multi-unit franchisee for companies including Boost Juice, Dreamy Donuts and other independently owned businesses. He is an internationally recognised Certified Franchise Executive (CFE) and a FRANdata Registered Franchise Lending Specialist. James founded Cashflow It in 2014 which now operates as Franchise Finance Australia.

Accreditation adds to the credibility of a franchise brand and reflects the success of the network overall. Having the backing of one or multiple lenders is a drawcard that may attract prospects to your network over others.” backing of one or multiple lenders is a drawcard that may attract prospects to your network over others. Often prospective franchise partners are well aware of the challenges they face in entering a network, and gaining the funding required to get their business up and running is one of the most daunting. The appeal of a streamlined recruitment and on-boarding process – without the stress of seeking finance – can aid in recruitment success and subsequently fuel network growth. Ultimately, accreditation is a tool that is beneficial to both franchisors and franchisees. Being able to offer existing franchisees pre-approved funding is important when encouraging growth, and accreditation with multiple lenders gives each franchise partner the opportunity to seek a solution that fits their business’s unique needs. When recruiting new franchisees, putting

accreditation in place ensures that quality prospects are never lost due to an inability to access the funds they need to start their business. Take your franchise network to the next level through accreditation. Franchise Finance Australia is a specialist funder to the franchise sector, with unrivalled knowledge of franchisees’ funding requirements as well as direct relationships with the franchise networks operating in Australia. Founded in 2014 by directors with a background in franchising, FFA has remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business. www.franchisefinanceaustralia.com.au

Business Franchisor 39

pROfilE: ShifT8

REVOluTiONiSiNg pOS fOR fRaNChiSES

feedback from our customers forms over half of our new features roadmap.” amy renae, general manager, shift8

ShiFT8 iS a leaDeR in PoinT oF Sale ManaGeMenT anD RePoRTinG SYSTeMS, DeveloPeD WiTh The SPeciFic PuRPoSe oF DeliveRinG FRanchiSe-cenTRic TechnoloGY ThaT SeRveS The neeDS oF ManaGinG MulTi-SiTe anD FRanchiSe neTWoRkS. arE you gETTing ThE laTEsT in TEchnology from your providEr? Shift8 combines the S8pos point of sale (POS) system with the latest in technology trends and franchise know-how. This allows for customisable loyalty and order-ahead apps, enabling you to reward your customers your way. Unify your brand with easy-to-configure intelligent digital signage (S8DV) that dynamically recognises day, date, time, temperature and duration. With playlists centrally controlled from the cloud, you can monitor what is playing across all of your locations right now, as well as create new playlists and schedule future promotions. You can dramatically reduce the cost of

40 Business Franchisor

traditional signage by deploying S8DV to your franchise network. Ongoing development, upgrades and new features are all included. Your brand will always have the latest enhancements, as Shift8 frequently releases new features for all customers.

livE daTa and up-To-daTE rEporTing & analyTics The POS platform allows Shift8 to instantly capture live data from the stores. Our suite of 700+ reports gives you access to live data, anywhere, anytime. With an unlimited number of users, you set the role and permission levels. Franchisees and area managers always on the go? S8mini is the mobile dashboard app that gives store owners and head office staff the ability to check on their stores while they are out and about. Shift8’s cloud-based reporting system enables you to schedule which reports you require and when, sending them straight to your inbox. ‘Not only do our franchisees love it, and use it constantly throughout the day to monitor their business, but it’s the technology that sets Just Cuts’ franchise system apart from the other

brands out there when it comes to franchisees selecting a franchise system to invest in,’ says Amber Manning, CEO of Just Cuts.

has shifTing your pos sysTEms always sEEmEd challEnging? Making the ‘Shift’ with Shift8 is a wellplanned and organised process. With years of experience in dealing with the most complex of implementations, the Shift8 team has a unique skill set that makes it easy. All conversions are handled by an experienced team consisting of project managers, trainers and support staff, who will ensure that everything runs to plan and on time, from the lead up to when your systems go live. The rollout is scheduled to match your brand’s needs. Whether you choose to transition groups of stores at a time, or your entire brand in one day, Shift8 is primed to handle these situations with ease. You’ll be wishing you’d made the shift sooner. For more information contact Shift8 at: 02 9571 4126 info@shift8.com www.Shift8.com

POINT OF SALE

HEAD OFFICE DASHBOARD

DIGITAL SIGNAGE

MOBILE DASHBOARD

REPORTING CONSOLE

ONGOING DEVELOPMENT

ORDERING APPS

LOYALTY PROGRAMS

02 9571 4126

info@shift8.com

expert advice: James Young

42 Business Franchisor

the chanGinG face of aUstralian

franchise recrUitment

James young has over 15 years’ experience in the franchise industry. he has recruited franchisees for over 40 major franchise networks in Australia and internationally. James also assists franchisor clients in recruiting experienced operational and head office personnel. he is a licensed business broker who assists franchisors with exit strategies and negotiations and franchisees looking to sell their franchise business.

ThErE hAS nEvEr bEEn A MOrE InTErESTInG TIME TO FInD, SElECT AnD rECruIT QuAlITy FrAnChISEES. AlThOuGh ThE FrAnChISInG InDuSTry hAS SEEn A nuMbEr OF SETbACkS, IT’S AlSO SEEn A WEAlTh OF GrOWTh AnD POSITIvE ChAnGES. WhIlE ThE nEGATIvE STOrIES MAy bE TArnIShInG CErTAIn brAnDS, ThE InDuSTry AS A WhOlE IS STrOnGEr FOr IT. We currently have a perfect storm of bad industry press, difficulty accessing funding, and increased competition, with more franchises than ever before fighting for a reduced pool of talent. There are over 1200 active franchise systems in Australia, with many more ‘franchises’ that have not yet granted their first franchise – all out there competing for franchise partners. Successful networks grow stronger. Simply put, you attract the franchisees you deserve.

Franchise networks are finding it increasingly harder to attract suitable candidates, as there are currently fewer quality candidates considering the franchise market. Potential franchisees are more educated and cautious when it comes to buying a business. As we are seeing in the real estate world, it is a buyers market at present, and thus franchisees come with more demands and higher expectations. Franchisees expect to be a priority, and they expect their money and their effort to provide a strong return on investment. So how do you separate yourself from the pack and ensure that you are worthy of quality franchisees? How do you position yourself at the top of the pool and show that your business is ‘buyable’, i.e. profitable, proven and successful? If you are new to franchising and currently launching your franchise offer, you need to make sure that you have invested in the right systems and structures, as well as partnering with the very best franchise consultants and lawyers. This is to ensure that your franchise offer will withstand the tests of competition; franchisees with a critical eye; funding difficulties; legal

reviews; accountants testing the financial offer; and, not to mention the toughest hurdle of all, the ‘pub test’ – friends and family who have all heard a horror story with the word franchising attached to it. The first challenge for all franchisors is linked to finding ways to attract a potential franchisee. How do you generate a lead and then how do you continue to increase the standard of the leads your system is receiving? The quick answer is that you need to invest in all of the touchpoints through which your franchise customer will come into contact with you. Do you look successful? Do you look like you are worth investing seven years and potentially hundreds of thousands of dollars in? Your website (yes, you need a separate franchise website), franchise brochures, quality of messaging and franchise lead generation strategy need to look better and function more effectively than the competition’s in order to fight for the best franchisee lead. They need to instil trust and confidence in your brand, and your processes and systems to recruit franchisees will stand testimony to this.

Business Franchisor 43

The key to a successful franchisee recruitment strategy is having everything you need to deliver in place. from financial details and legal documents to application forms, these should all be prepared before you start your franchise lead generation and recruitment journey.” have an even more attractive offer for potential franchise partners.

if you are new to franchising and currently launching your franchise offer, you need to make sure that you have invested in the right systems and structures, as well as partnering with the very best franchise consultants and lawyers.” If you were buying a car, you would base your decision on a number of factors including customer service, brand and price. Buying a franchise business is no different! Your offer needs to be competitive, you need to have a quality brand, and the process for purchasing the business should be hassle-free and inviting. Make sure that you have the necessary systems in place to ensure that every stage of the process is achievable. Be prepared and know what needs to be done. The key to a successful franchisee recruitment strategy is having everything you need to deliver in place. From financial details and legal documents to application forms, these should all be prepared before you start your franchise lead generation and recruitment journey. You also need to invest in generating leads. Currently, our firm – which works with approximately 25 franchisors looking to grow across Australia and overseas – has an average investment per sale of approximately $4500. The industry average can be quoted at almost three times this amount. But these results are not just based on the look and feel of your franchise offer. What we do know is that you need to invest in marketing in order to generate leads and be able to take them through the recruitment process.

44 Business Franchisor

The key to successfully growing your business is that behind the sizzle and sales pack there is real substance and proven and profitable success. You need to be able to prove this statement and back it up with factual data. Your training systems, your operations manuals, your franchisee support, your head office skills, industry knowledge and point of difference are valuable. These all make for saleable offer; they define your brand and make it a franchise opportunity worth investing in. Your recruitment and franchise sales process then becomes just as critical to a successful lead generation and sales result. Consider who is representing your franchise to the market and ensure that they have enough knowledge and skills to do so. Remember that your existing company store’s performance and profitability all become critical to whether the leads you generate will move through the steps to joining your network. The positive to launching a new franchise brand is that you can shape your network, invest in your first franchisee’s satisfaction and success, and use this to attract even more quality candidates. You can also continue to improve your company locations and tighten your systems, so that you

If you are an existing franchise, it is time to review and reﬂect on your support model and franchise systems, and invest in your franchisees’ success. After all, your current pool of franchisees will be advocates for your brand, and you want them to share positive stories in order to grow your franchise network. Potential franchisees – now more than ever – will be looking to your current system for insights into their future success. If there are skeletons in your cupboard, like many of the stories we have been hearing about from some of Australia’s bigger franchise systems, they will be exposed and it will send quality applicants running. The Franchising Code of Conduct has put systems in place to protect franchisees, and the ACCC is ensuring that all the regulations are met and that franchisors are adhering to industry standards and the law set out by the Code. Now is the time to invest and not to cut corners. Ensure that your franchise business is transparent and able to show its offer in a positive way. Put your best foot forward and ensure you have put everything prepared, thus setting your franchisees up for success. Never take your franchisees for granted and never forget that their success is your success. So go out there and get the franchisees you deserve! They are out there, and they are crying out for honest, quality franchises run by quality people. Good luck! Contact James on: 0404 078 782 james.young@dcstrategy.com www.dcstrategy.com

C A R D S H E L L & E N E R G Y V I VA

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expert advice: Pamela Jabbour

The Importance of Uniforms for Franchisors

A brand is one of a company’s most powerful assets, and at a time when workplaces are changing at a phenomenal rate, and the competition has never been so fierce, the power of brand image has never been more important. The successful companies and brands that are making waves in their space are those with consistency across all elements of brand marketing, from store fit-outs to packaging and advertising material. A brand can signify quality and inspire confidence, and a company uniform is one of the first contact points that your customers have with your brand. First impressions count, and uniforms are a key part of selling your brand message and story, ensuring

46 Business Franchisor

Pamela Jabbour is the founder and CEO of Total Image Group, which designs, sources and manufactures uniforms to some of Australia’s leading brands such as Dan Murphy’s and Fantastic Furniture. With offices in Sydney, Melbourne and China, Total Image dresses over 300,000 Australians per day in their work wardrobe.

your business and team really stand out from the crowd. As a franchisor, it is pivotal that your brand is protected and correctly represented by your franchisees. You head up a large community of business owners representing the brand, and the power or impact that brand has on the market. The clarity and consistency of your brand across all its locations – and the power of the brand message – is down to the support of each individual franchisee. If each franchisee

coordinates their own uniforms and doesn’t follow the brand requirements, they risk diluting the power of the brand and membership which they are technically paying to be a part of. When a brand develops a consistent look and feel across multiple locations, it builds confidence in that brand and lets customers know that they can expect the same experience, regardless of which location they have visited. A great example of a brand that successfully manages consistency and impact worldwide is

McDonald’s. McDonald’s has over 35,000 stores in 110 different countries, yet it doesn’t matter if you are in America, Japan or Australia – you are going to have a comparable experience wherever you are. It is arguably one of the most successful franchises of all time, and I can’t help but admire and respect the level of consistency that the McDonald’s brand has achieved globally. Their success is in the level of detail – from branding to food, to store fit-out, right down to the uniforms – which ensures a similar experience regardless of location. Uniforms can serve different purposes in different situations, but there are some common benefits. If you are debating whether or not to introduce a uniform for your business, or if you’re unsatisfied with the current uniform and looking to make a change, learning why team uniforms are so important may help you to decide.

Team uniforms promote your brand If your corporate clothing features your brand logo, or even your brand colours, you are building recognition every time someone sees an employee wearing it. It’s free advertising and it reinforces your brand plan and objectives in the work environment. Companies spend thousands of dollars each year on marketing, in-store branding, and trying to communicate what they are about. Uniforms are an economical dual service marketing function: they benefit and motivate your employees, as well as telling your brand story to all who come into contact with them.

Team uniforms promote equality Uniforms are a great equaliser. Your staff may occupy different levels in the chain of command, but when they’re all dressed in the same uniform there is a greater sense of team spirit. A uniform also provides a level of comfort and structure for employees and eliminates the pressure of what to wear to work – saving them from having to keep up appearances and spend an inordinate amount of personal money on clothing for work!

Team uniforms promote loyalty When your employees associate themselves with your brand, they are more likely to feel positively about it. When they wear your uniform or branded accessories in public, they become brand ambassadors. A company uniform defines what you are about as a business, and ensures

A brand can signify quality and inspire confidence, and a company uniform is one of the first contact points that your customers have with your brand.” that your team is on the same page. Team members will wake up each day and be reminded, as they get dressed, who they work for and what that represents. A good uniform can help employees to feel excited and motivated, creating a feeling of team spirit and a sense of belonging.

will ensure that your team all look, feel and act

Team uniforms BOOST performance and sales

and the direct impact on staff morale, sales and

We live in a society where the clothing you wear represents your values, beliefs and purpose, and helps others to identify with you. In business, effective branding can make you appear more approachable, professional and confident, and often make or break a sales opportunity.

countries – as a franchisor can be difficult, and

Winning business is tougher than ever before, and companies that take the time to ensure their staff uniform represents the best version of their brand, culture and purpose are more likely to get ahead in sales and performance and be market leaders in their field. If done correctly, a uniform

the part, and that your clients are confident, comfortable and proud to be associated with your brand. Today, more than ever, businesses are aware of the importance of a strong purpose and culture performance. Communicating that message across multiple locations – and even different a uniform is a key part of achieving consistency and confidence in brand messaging. A company uniform defines what you are about as a business, and ensures that your team is on the same page, regardless of the location in which they are based. Are your team members excited and motivated to put on their uniform every day? Does it resonate with what your business stands for? Find out more at www.totalimagegroup.com.au

Business Franchisor 47

a-Z directorY

francHisinG & business opporTuniTies eXpo The Franchising & Business Opportunities Expo is an exciting event that brings together the best franchise and business systems with potential franchisees and investors. It is the only exhibition endorsed by the Franchise

naTional francHise insurance broKers NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and

marsH & maHer ricHmond bennison laWyers Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients. Marsh & Maher Lawyers provide fi xed fee services to franchise clients for most aspects of work.

sHifT8 Shift8 is a leader in point of sale management and reporting systems, formed with the specific purpose of meeting the needs of managing multi-site and franchise networks. Both emerging and established franchisors are among the over 50 quick service food, restaurant and café brands that have a comprehensive solution in Shift8’s cloudbased management suite. Detailed business analytics and powerful reporting capabilities are invaluable for all their customers, to be able to have a point of insight at the point of sale.

ViVa enerGy ausTralia Viva Energy is the sole licensee of Shell products in Australia. Our fuel management card, Shell Card, is packed with benefits, and is an easy way for small businesses and franchisees to streamline admin, manage paperwork, and access discounted prices* on Shell’s quality fuels. Viva Energy can tailor a Shell Card offer for your franchise group. Enjoy receipt free glove-boxes for

48 Business Franchisor Franchise Australia and New Zealand

Council of Australia and has been delivering great results since 1987. The show runs annually in Sydney (March), Brisbane (June) and Melbourne (August). For further information please contact Fiona Stacey on tel 03 9999 5464, email fiona@specialisedevents.com.au or visit our website www.franchisingexpo.com.au.

provides you with full documentation. Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business. For more information call 1800 776 747, email info@mynfib.com.au or visit www.mynfib.com.au.

• Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law • Intellectual Property • Retail Licensing and Distribution. For more information contact us today: Ph: 03 9604 9400 | Email: robert@mmrb.com.au Website: www.mmrb.com.au/

Being 100% Australian owned, designed and developed, Shift8 is primed to meet their customers’ present and future needs, with the software suite constantly updated to ensure their position as a leader in the field. Their senior management has extensive programming, financial and operational experience gained in the Australian retail landscape, and over 50 years combined experience in franchising as both franchisors and store owners. This gives Shift8 a unique edge in software design and service. For more info call 02 95714126, email info@shift8.com or visit www.shift8.com

your Business. Shell Card is the smarter way to fuel your business! To learn more about how Shell Card can help your franchisees manage their fuel usage, visit: www. shell.com.au/business-customers/shell-fuel-card/ franchise.html Or, contact Shakeeb from Viva Energy on 03 8823 4897, to discuss a customised solution for your franchisees that will better fuel their success. *Discounts available vary.

A KNOCKOUT

BUSINESS

OPPORTUNITY

LISTED IN ENTREPRENEUR’S TOP 20 FASTEST

WHY 9ROUND?

GROWING FRANCHISES, 9ROUND 30-MINUTE

• Turnkey systems, financing options, and world class support

IN THE FITNESS INDUSTRY.

• Systems and processes that can be replicated for multi-club ownership

KICKBOXING FITNESS IS BREAKING THE MOULD

FRANCHISE OPPORTUNITIES NOW AVAILABLE

With 43 locations open or in development across Australia & New Zealand, and over 800+ clubs open world-wide, there is no better time than to get on board with a choice of locations.

REQUEST A PROSPECTUS AND LEARN MORE ABOUT OPPORTUNITIES TO OWN A 9ROUND 0415 345 794 • MVARLEY@LIFTBRANDS.COM • 9ROUND.COM.AU

Business Franchise Australia and New Zealand 49

FO c U S Fe at U r e : 9 r o u n d

9round enTers The ring

WiTh eXPansion aCross ausTraLia 9round was created in the usA in 2008 by world champion kickboxer shannon Hudson, who wanted to create a system where you could train like a fighter but never get hit! 9Round has grown quickly to over 750 clubs worldwide and is in the top 20 of Entrepreneur’s Fastest Growing Franchise list for 2019. New to Australia, 9Round is still in its infancy with the backing of a global parent company, Lift Brands Elevated Wellness Companies. Lift Brands is the

world’s largest wellness franchise organisation, with over 3000 clubs open worldwide; almost 20 9Round clubs are open and operating in Australia and there is healthy growth ahead for the brand.

What does 9round do? 9Round has hit the ground running as a boutique gym, with a results-based 30minute full body workout that changes every day. 9Round is fast paced and lots of fun, incorporating kickboxing, boxing and functional training. 9Round is designed for the time-poor modern consumer, with workouts suitable for everyone from the seasoned athlete to those who are new to the gym.

50 Business Franchise Australia and New Zealand

The 9round difference: workouts that work Fitness can be a confusing and expensive undertaking for consumers. Knowing where to start by yourself is challenging; paying for a personal trainer is expensive, and you may feel you don’t get the results you want with one (even two) sessions a week. Maybe your gym doesn’t offer enough classes, or the times just aren’t right for you – if only that circuit class started 15 minutes later! These are just some of the reasons why 9Round exists. The rolling circuit workout has 9x 3-minute stations, and there are no class times – so you can turn up when it suits you and start on any 3-minute station with a trainer to make sure you get maximal results in minimal time. The benefits of HIIT training with a heartrate monitored workout means you work at your fitness level but get results fast. Why spend longer in the gym when you don’t have to? Plus, you can make friends and build a community with people who are sharing the journey with you! Our support is second to none, and we are looking forward to growing the 9Round family in Australia.

“if you know where you want to be and have the drive to get started, we’ll help you get to know the brand, train you in running the business and finding the trainers, and provide the resources to help you succeed.” encourage you to ask all the questions you can think of – this is your business and we’re here to help take you through the process one step at a time to give you the best possible start. We have the experience, which means you don’t have to know it all already. If you know where you want to be and have the drive to get started, we’ll help you get to know the brand, train you in running the business and finding the trainers, and provide the resources to help you succeed.’ Our experienced property team will hunt down the right sites to fit the business model, and you’ll also have help from our in-house marketing team and systems support from your presale until after you open. No need for guessing – once you are a franchisee with us, you’ll spend a week at Head Office in a workshop-style ‘training camp’ in Brisbane, where we show you the systems and processes to follow which have created global success, before taking you right into our flagship Bowen Hills club to show you how to run a 9Round workout.

Become a part of the 9round team Our ideal franchisee is someone who loves fitness and wants to help others on their fitness journey in a fun new way. Previous experience as a personal trainer is helpful for those wanting to be an owner-operator, but we have full training for franchisees no matter how hands-on (or off ) they want to be in the dayto-day running of the club. A genuine passion for health is a commonly shared trait among our most successful franchisees. Ideally, we are looking for owner-operators – not necessarily in a full-time capacity, but driven to be hands-on and connect with their business and corporate head office. They usually check in with their Club Manager at least once a day. Franchisees don’t have to be fitness enthusiasts, but there are many in the franchise network who are.

Some other attributes that 9Round looks for in a potential franchisee include:

To make sure you and your team are on the road to success, once your gym is open you will receive weekly phone calls, monthly webinars and quarterly face-to-face education training sessions. Finally, our annual multiday Lift Brands Summit provides franchisees with the opportunity to learn from and connect with other franchisees and suppliers through a ‘ONE TEAM’ approach.

• Previous business experience

The future for 9round

• A passion for changing lives

We opened 10 clubs last year and have cracked 750 clubs globally! Boutique fitness is growing rapidly and this year we are set to open another 24 clubs. We are focused not only on growing our network, but also on making sure that all our clubs continue to be highly successful and, above all, that our franchisees are happy!

• An entrepreneurial spirit • Self-motivation • Motivated by results • Passionate about embracing a global brand and buying into a global franchise system • Personal worth of approx. $200K net to meet finance approval.

Join us today!

A supportive environment for franchisees We understand that getting started in business can be daunting, so 9Round takes a hands-on approach to helping new franchisees. Andy Peat, COO, says, ‘From the first enquiry, we

9Round has expanded nationally across Australia and we now have sites available in all major states. Please contact us directly for up-to-date information on available territories at: 0415 345 794 www.9round.com.au/own-a-franchise

Business Franchise Australia and New Zealand 51

pr O Fi L e : h o g’s au st r a l i a’s st e a k h o u s e

Q A

with HOG’S FRANCHISE RECRUITMENT MANAGER

greg ‘disCo’ MiLLer

How long have you been with the Hog’s family? I was the national marketing manager at Hog’s Australia’s Steakhouse for many years and recently moved into a franchising role. I come from a strong background in hospitality and I owned businesses in Airlie Beach, where Hog’s was born. To our core, we’re an upbeat, family-friendly, Australian steakhouse with a passion for good food. My aim is to ensure that everyone in Australia knows the Hog’s Breath brand: what it stands for and what it delivers.

What is your signature product? We’ve always been known for great steak and for our famous 18-hour slow-cooked prime rib. Over time, our product offerings have diversified to accommodate the dynamic Aussie appetite, with options to suit any dietary need and the pickiest of palettes. We’re all about providing quality food in a comfortable, friendly environment. We want people to have fun and enjoy themselves at Hog’s. We call it Hog’spitality.

“Potential franchisees will quickly note our distinctive culture and way of life, and we want them to reﬂect the fun, upbeat vibe that we’re known for.”

Who fits your franchisee profile? We are a lifestyle-driven company where the franchise owners are the face of their business and celebrate successes with their staff. Potential franchisees will quickly note our distinctive culture and way of life, and we want them to reflect the fun, upbeat vibe that we’re known for. For us, it’s personality, culture and business fit.

How do you take care of your franchisees? Before franchisees officially sign on, they are properly vetted to ensure a great match for both sides. We have a series of meetings with the support office team to establish open communication and complete transparency in all aspects of running a successful business. We also have an accredited relationship

with multiple financial institutions that specialise in franchise lending. Our franchise development team helps franchisees to choose the best sites, and we provide an eight-week training program at ‘Hog University’ in Brisbane. Once a franchise opens, our training team stays for support during the initial weeks. An assigned business coach is available for franchisees to contact any time, and we also make regular restaurant visits to all Hog’s locations.

birthday this month, a huge milestone in the hospitality industry. Our focus for the next 12 months will be continued support for franchisees as we navigate the ever-changing landscape of food service. It’s one of the most challenging industries to thrive in, and each location has its own unique community and quirks that we must address to satisfy our customers. But it’s a challenge we’re willing to take on, because we love and believe in this brand.

What milestones have you celebrated recently, and what’s your focus for the next 12 months?

Hog’s Australia welcomes any interested parties to get in touch with our franchise development team. Franchisee information, including current Hog’s location availability for new and established sites, can be found at: www.hogsbreath.com.au/franchising

We kicked off celebrations for our 30th

52 Business Franchise Australia and New Zealand

Hog

Good Food and Good Times with Good People Hog’s Australia has exciting business opportunities for YOU!

This year we celebrate 30 years of successful operation and rare opportunities are now available to join the largest privately owned casual dining group in Australia. Enquire today about our existing sites for sale and join the team at Hog’s Australia’s Steakhouse.

Visit our website www.hogsbreath.com.au/franchising

Business Franchise Australia and New Zealand 53 Hogs_Magazine Ad_210x297_V1.indd 1

22/3/19 1:30 pm

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what’snew! Melbourne-based entrepreneurs challenge the traditional model of aged care Vancouver in 2001, with the specific purpose of ‘doing aged care differently’. While living in Vancouver for the past two years, Biesse and Fitton saw the synergies between the North American and Australian markets and recognised the need for the Happier Ageing® model in Australia. ‘Study after study proves that a positive mindset is the cornerstone of not only a longer, happier life, but of greater physical health and cognitive function,’ Fitton said. ‘The traditional aged care model continues to focus on the decline and disability associated with age. The strain this places on the healthcare system demands that aged care be done differently, with a model of care that focuses on making lives better – happier and healthier.’

Melbourne-based entrepreneurs Amber Biesse and Matt Fitton have been awarded the Australian Master Franchise Licence by Nurse Next Door, North America’s fastest growing home care provider. The agreement saw the pair launch a new model of aged care in Melbourne earlier

this year, with plans to expand throughout Victoria and Australia in 2020. The Nurse Next Door home care model is built around positive psychology with a focus on mental health and the trademark Happier Ageing® philosophy. Founders John DeHart and Ken Sim launched Nurse Next Door in

As the Australian Government encourages Australians to consider ageing at home as a viable alternative to residential care, the timing to launch Nurse Next Door in Australia could not be more relevant. ‘Inhome health care makes it possible for older Australians to age in their own home, on their own terms,’ said Fitton. https://nursenextdoor.com.au/

Coles partners with Optus Business to drive store efficiencies and innovation Utilising the capabilities of the new network infrastructure, Optus will deliver high-speed data services that will enable Coles to implement future digital strategies and improve service levels for our customers. ‘The increased speeds and capacity of this new network give us the flexibility to rapidly increase the speed at which our stores can access and transfer data,’ Coles Chief Information and Digital Officer Roger Sniezek said. Coles has signed a multi-year partnership with Optus Business for digital network and telecommunications services, delivering a range of benefits to improve the shopping experience and help make life easier for customers and team members. The strategic alliance delivers high-capacity fibre services across the Coles retail, distribution and support centres nationally, improving performance and unlocking new opportunities to introduce innovative business solutions and technologies. Coles customers will also see new Optus-powered products in store and online, and flybuys members will have great new ways to earn points with Optus offers.

56 Business Franchise Australia and New Zealand

‘We are delighted to be partnering with Optus to leverage the speed, flexibility and agility of the new network, implement new digital initiatives, and ensure we are well-placed to take advantage of emerging technologies in coming years.’ The Optus network will make life easier for team members in store by reducing the time taken to complete regular processes, improving productivity and allowing more time to focus on customer service. ‘Both Coles and Optus Business share a passion for customer service, which is at the heart of our strategic partnership,’ Optus Business Managing Director John Paitaridis said. ‘Our collaboration will help make the lives of more than 115,000 Coles team members easier and we look forward to working with Coles on future initiatives.’

Further growth for The HR Dept with four new franchisees Outsourced human resources specialist The HR Dept has expanded further in Australia with the launch of four new franchisees in Sydney and Perth. The company, which provides HR advice and support on a personal, local basis to small and medium-sized businesses (SMEs), now has nine franchisees operating across Australia. In Perth, the new franchisees are Amanda Fox in the inner city and Chris Muir-Smith in the south. In Sydney, Esther Colman has launched in the eastern suburbs and is joined by Mhairi Holway in the northern beaches area. Each of the experts will provide high quality expertise for the benefit of local SMEs who are looking to develop their people strategies, backed by many years of experience working with large and smaller businesses. Gemma Tumelty, Managing Director of The HR Dept Australia, said: ‘It’s challenging

setting up a new business, but we have enjoyed significant success over the past 18 months and are delighted to welcome these four new franchisees into The HR Dept family. The HR Dept’s footprint in Australia is growing rapidly and we are looking for new HR professionals to help grow our network.’

The HR Dept launched in Australia in 2017, based on the success of a British model which began franchising in 2005 and now has 75 franchisees serving more than 6000 SMEs across the UK, Ireland and Australia. https://hrdept.com.au/

ATO benchmarks help small businesses ‘swim between the flags’ • Manufacturing

is viable, competitive and not at risk of venturing into rough water.’ The benchmarks also help the ATO identify small businesses that may be doing the wrong thing and not properly reporting some or all of their income.

The Australian Taxation Office (ATO) has released updated benchmark data to help small businesses across the country compare their performance with their competitors and ‘swim between the flags’. Assistant Commissioner Peter Holt said that businesses should use the benchmarks to gauge the strength of their business and keep an eye on their competition. ‘We want small businesses to stay afloat, so our benchmarks are a great way to ensure your business

• Automotive electrical services • Machinery and equipment repair and maintenance • Architectural services

‘Think of the benchmarks like the red and yellow flags on the beach. If you stay between the flags, you’ll be less likely to attract our attention,’ Mr Holt said.

• Veterinary services

Updated benchmark data for more than 100 industries is now available for the following categories:

The quickest and easiest way to work out how you compare is by using the business performance check tool in the ATO app, which does the calculations for you. The ATO app is available to download for free from Google Play and Apple app stores.

• Accommodation and food • Building and construction trade services • Education, training, recreation and support services • Health care and personal services

• Retail trade • Transport, postal and warehousing

To view the small business benchmarks, download the ATO app or go to ato.gov.au/BusinessBenchmarks

Business Franchise Australia and New Zealand 57

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Fe at U r e a r t i c L e

BUSINESS SUPPORTING BUSINESS:

FRANCHISES YOU WON’T FInd In tHe Food court if you were asked to name a franchise off the top of your head, what would come to mind – a fast food chain? Perhaps a bakery? something starting with Jim’s? The fact is, there are hundreds of franchise brands across Australia. Franchises are everywhere, from restaurants to pharmacies, gyms to hotels, retail stores to coffee shops. If you are thinking of buying a franchise, there are many different types to choose from. But one type that you may not have considered is business services. Business services franchises are those that offer a service to help and support other business owners – services like marketing and

58 Business Franchise Australia and New Zealand

promotion, human resources, financial advice, courier services, technical support, and even office supplies. While these may not be the franchises that you will find at your local shopping centre, business services make up a significant proportion of Australia’s franchise economy. According to the latest Franchise Council of Australia (FCA) report, Franchising Australia 2016, retail, food, and accommodation make up 45 per cent of Australian franchise brands, and the remaining 55 per cent is a combination of personal, support and business services. The precise definition of what is considered a business service can vary, which makes it difficult to pigeonhole. However, for the purposes of this feature we will consider it to include any franchise that supports and assists other businesses, and we will explore some key examples of these companies.

Office supplies and waste management

Postal services – couriers, mail and shipping These companies help small, medium and large businesses with all their distribution needs, from regular post and courier delivery to warehousing, shipping, freight and logistics. A small but important percentage of Australian franchisors, postal services are essential for any business that relies on timely and efficient transportation of its products or documents. Well known brands include InXpress, Couriers Please, Fastway, Pack & Send, Mail Boxes Etc., Mail Plus and Australia Post.

Financial services Often considered a separate category to business services, financial and insurance services make up three per cent of the industry in Australia, according to the FCA. It could be argued that financial assistance counts as a business service, as it involves helping business owners with anything from bookkeeping and tax accounting to financial consulting and investment strategy. Franchises in this area include IFG 50/50, First Class Accounts, Resolve Finance and H&R Block.

Marketing Franchises in the marketing industry help other businesses to promote their brand and achieve commercial success. A key example of this is Signarama, an established franchise that offers businesses a range of branding solutions using signs, banners and vehicle wraps. Likewise, Fully Promoted (the franchisor previously known as EmbroidMe) can add a corporate logo or message to anything from uniforms and apparel to drinkware, hats and other custom products, providing many opportunities for brand visibility.

“Keeping in shape, being healthy and wellgroomed can make you feel vibrant and attractive, on the inside and out. Fit and healthy people radiate happiness, self-confidence and vitality.”

In contrast to the bigger picture of marketing and promotion, these franchises support businesses with their day-to-day operations. Consider all the things that you need for an office to run smoothly – ink and toner for the printer; shredding for confidential documents, or other waste removal; a vending machine in the break room; batteries for everything from forklifts to security alarms. Franchises in this area include Battery World, Cartridge World, Provender (vending machines) and Mil-tek (waste solutions).

Printing services Technology has changed the way that many people do business – it’s not uncommon to work on the go, which means we are no longer tethered to a physical office. Unfortunately, this means giving up one of the most useful office perks: access to a commercial printer, scanner and photocopier. This is where printing franchises can help. In addition to professional printing and copying, they also offer graphic design, website and digital services, and custom promotional items. Examples of these franchises include Snap, Kwik Kopy and Minuteman Press.

iT and tech support Small and medium businesses may not have their own IT department or qualified technicians on hand to test electrical appliances for safety. These jobs can be outsourced to other companies, including franchises like Experimac (Apple repairs and upgrades), Geeks on Call (IT) and Jim’s Test and Tag (electrical).

commercial cleaning Every office building needs a cleaner, and Australia has a number of commercial cleaning franchises that provide this service. There are also franchises offering additional services such as commercial carpet cleaning, painting, and property maintenance. Examples of cleaning franchises in Australia are ACE Cleaning Services, AMC Commercial Cleaning, Keen to Clean and Cleancorp. This is by no means an exhaustive list; these are just a few examples of franchisors that exist in the business services sector. The key thing to remember is that becoming a franchisee doesn’t necessarily mean entering the world of retail or hospitality. If you are interested in being part of an organisation that helps other business owners and their staff, then running a business services franchise may be for you. As you do your research and seek professional advice, consider which franchises are available in your area and what you can afford. You may find that when you take some time to look beyond the food court, beyond the shopping centre, to the franchises operating behind the scenes to support local businesses, you will find the one that is perfect for you.

“Franchises in the marketing industry help other businesses to promote their brand and achieve commercial success.”

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“A small but important percentage of Australian franchisors, postal services are essential for any business that relies on timely and efficient transportation of its products or documents.”

FEATURE : busi n ess serv ices

e x per t a dv i c e

Considering a Business Services franchise? Issues to consider and questions to ask

recruitment and HR services, appliance testing and drug testing. With some of the difficulties currently facing many retail franchised businesses, franchises that offer services to other businesses may be an alternative worth considering. However, if you are considering buying a business services franchise, in addition to your usual due diligence ensure that you carefully consider the issues set out below.

Territorial rights and limitations on exclusivity

The recent franchising inquiry report, referring to 2018 research by IBISWorld, noted that franchising has expanded across several industries, including many different service industries such as administration and support services, rental and hire services, education and

training services, finance and insurance services, construction and trade services, information media and telecommunications services. They can include a wide variety of business services models and concepts, such as cleaning, couriers, bookkeeping, accounting, mortgage and business brokers, strata management, printing and copying,

60 Business Franchise Australia and New Zealand

It is important to be clear about whether or not you will be granted a geographical territory. If so, make sure you know whether the territory is exclusive or if other franchisees or the franchisor may be competing with you in the territory. Most franchise agreements place limitations on exclusivity, and in some, the territory will be non-exclusive. Often the franchisor will be responsible for referring clients to franchisees. Your franchise agreement might provide you with a first right to service clients in a geographical area.

Client contracts The nature of business services franchising lends itself to longer-term relationships with clients and may work on the basis of fixedterm contracts. There are a number of issues to consider in relation to such contracts. When considering the value of such contracts, take into account the length of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract. Franchisors will sometimes offer, or even

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“When considering the value of such contracts, take into account the length of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract.”

guarantee, that they will provide franchisees a certain quantity of work. However, if the contracts can be terminated by the client easily or on short notice, the true value of the contracts may be less than is initially apparent. If a contract is terminated or not renewed, does the franchisor have an obligation to offer you another contract, or are you responsible for finding your own replacement? Often client contracts will be made between the franchisor and the client, not between the franchisee and the client. Although this has its advantages, there may be disadvantages in terms of lack of control by franchisees. When you are referred clients on fixed contracts by the franchisor you may not have the opportunity to negotiate the contract – the price may have already have been determined. If so, the price should be based upon a realistic assessment as to how long and how many people it will take to provide the service. If the job takes longer than anticipated or if more staff are required, the contract may not be as profitable as expected. As part of your pre-purchase and ongoing due diligence, you need to make your own assessment to ensure each contract can be realistically completed for the price being

“With some of the difficulties currently facing many retail franchised businesses, franchises that offer services to other businesses may be an alternative worth considering.” Louise Wolf | Senior Associate | MST Lawyers

paid by the client. You should ask for copies of each contract. Often franchisors are responsible for invoicing and chasing debts from clients. You need to have a clear understanding of the implications for you if a client does not pay or pays late.

Fees Most franchise agreements require the payment of both upfront fees and ongoing royalties (amongst other fees). Royalties are usually structured as a monthly or weekly flat fee or as a percentage of turnover. Upfront fees are sometimes based upon a certain value of client contracts, whereby you can purchase different levels depending on the amount of work you want. This

can be an advantage, because if you only want to work a few hours a week, a lower initial investment can help get you started. However, it is very important to understand what you are getting for the amount that you’re paying, how you go about upgrading to another level, and what happens to your investment if you wish to downgrade. You should also ask about what happens if a client terminates or does not renew its contract and what implications this will have for royalties or other fees that you are paying the franchisor.

Transfer There are obvious advantages to purchasing a business with existing clients. However, given the longer-term nature of business

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E x pER T A dv i c E

“The research process can be daunting and overwhelming. However, you don’t have to do it all alone – help is available.”

services, the clients’ loyalty to the existing franchisee may make it diﬃcult for you to take over as service provider. Ensure the vendor of the business undertakes a process of handover and client referral so the clients will be comfortable with you. Also consider how the outgoing franchisee should be restrained from competing against you.

end of term and restraints At the end of the term, the franchise agreement may prevent you from providing similar services for a certain period of time, either in the geographical area that you have worked in and/or to businesses to which you have provided services. This is an issue that you should consider before purchasing the franchise. If you have provided similar services in the industry before you became a franchisee, then you need to negotiate changes to any clause in the franchise agreement that limits your ability to continue doing so at the end of your term. Similarly, if you introduced your own preexisting clients to the franchised business, you should not agree to being restricted from serving them after the end of the franchise agreement.

“There is no substitute for thoroughly reading all the key documents, including the franchise agreement and disclosure document, yourself. Once you’ve done that, you will be in a better position to ask questions of the franchisor, as well as former and existing franchisees.”

Get help to make the right decision Purchasing any type of franchise is not a decision to be made lightly. However, with business services franchises, there are particularly complex issues that may arise because of the nature of longer-term contracts. These are just a few of the issues that must be considered in depth. It is critical that you take your time to undertake suﬃcient research and consider all your options as well as the risks. The research process can be daunting and overwhelming. However, you don’t have to do it all alone – help is available. To learn more about franchising, there is a significant amount of valuable information available for free from reputable sources including www.accc.gov.au. There is no substitute for thoroughly reading all the key documents, including the franchise agreement and disclosure document, yourself. Once you’ve

62 Business Franchise Australia and New Zealand

done that, you will be in a better position to ask questions of the franchisor, as well as former and existing franchisees. Before making your decision, it is vital that you seek advice from accountants, lawyers and business advisers who are experienced in franchising. Once you have taken these basic steps, you are better placed to understand your options and risks, and you will be heading towards making the right decision for you. Louise Wolf is a Senior Associate working within the Corporate Advisory and Franchising Team at MST Lawyers. She advises franchisees and franchisors in relation to franchising, intellectual property and privacy. For more information please contact Louise at: 03 8540 0273 or 03 8540 0200 www.mst.com.au

WORK SMART

NOT

HARD!

IFG 50/50 - A Different Franchise Approach!

Staff Premises Long hours Paper Inventory

WE BUY INVOICES TO ACCELERATE OUR CLIENTSâ&#x20AC;&#x2122; CASHFLOW! WE DO NOT LEND MONEY!

GET A FREE eBOOK www.Interfacefinancial.com.au/franchise

AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED

For more information contact David Banfield, President E: ifg@interfacefinancial.com

FE ATUR E : Busi N ess serv ices

S p OT L i G H T O N S ERv i c E : T H E I N T ER FAC E FI N A N C I A L G R O U P

HArD WOrKers –

nOt WAnteD!

“Our working smart approach is for franchisees to be engaged during what we refer to as core business hours – typically between 10am and 3pm.”

64 Business Franchise Australia and New Zealand

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How often have you seen a headline that says hard workers are not wanted? As the franchisor of the iFG 50/50 franchise from The interface Financial Group, we are actively looking for new franchisees, but not looking for ‘hard workers’. In our experience, hard workers often fall into the ‘workaholic’ category – they are often re-inventors of the wheel and invariably become obsessed with detail, often just for the sake of detail. While these may be admirable traits in some situations, they would not represent a good fit for an Interface franchisee. What’s wrong with hard workers and why don’t they fit for Interface? Let’s be clear: there is absolutely nothing wrong with hard work. It’s just that we don’t see the necessity for hard work when you can substitute that with smart work.

Workaholics We have spent many years building a business and integrating as much technology as possible to ensure that our franchisees are ‘work smart’ individuals and not ‘work hard’ individuals. On a regular basis, we meet potential franchisees who have a history of working 40, 50 or even 60 hours a week – and that’s not for themselves, but for somebody else. Even working those hours for yourself is definitely outside of the Interface box. Our working smart approach is for franchisees to be engaged during what we refer to as core business hours – typically between 10am and 3pm. For individuals who cannot scale down to core business hours, this is probably not the right franchise for you.

Wheel inventors As a franchisor, we are not looking for people who want to reinvent the wheel, and certainly not people who want to reinvent the franchise. The Interface Financial Group has been in operation for over 45 years and, as such, we think

“As a franchisor, we are not looking for people who want to reinvent the wheel, and certainly not people who want to reinvent the franchise.”

we have a well-honed, developed and proven system. That is not to say, however, that we do not continue to add improvements and technology as appropriate. Individuals who want to reinvent the system once they have come on board are invariably not happy as a franchisee. This applies to basically any franchise – the franchisor has done the heavy lifting and crafted the franchise, and it is now established and ready for the franchisee to utilise that developed work to build their own franchise unit.

Detail – Detail – Detail The Interface Financial Group is engaged in a financial service known as invoice discounting. This is a simple and straightforward service whereby our franchisees, in conjunction with ourselves, purchase current quality invoices from our client companies who don’t want to wait 30–90 days to get paid for goods or services that they have already delivered. We are in the business of cash flow acceleration. Needless to say, this financial service requires much attention to detail, so that each and every transaction is documented accurately and in a timely manner. When you are working with money, you need to be very comfortable that the system is proven and will protect both franchisee and franchisor. IFG’s 47 years of experience certainly provides that comfort zone. So, on the one hand we say we are looking

for individuals who are not obsessed with detail, but on the other hand we clearly indicate that our transaction requires much due diligence and documentation. The difference comes when we look at who is doing the paperwork involved in an invoice discounting transaction. While both parties – franchisee and franchisor – are engaged in the transaction, it is the responsibility of the franchisor to handle all the transactional paperwork from start to finish. This means that our franchisees essentially have a paperless franchise and are not caught up with the day-to-day detail of form filling, report writing, bookkeeping, and so on. If you’re someone who is perhaps a recovering workaholic, if you enjoy utilising your people-to-people skills rather than your people-to-paper skills, and if you are an individual who likes the comfort of working under the umbrella of a well-established and proven system, then the IFG 50/50 franchise should be on your radar. We live and work in the age of technology, and The Interface Financial Group have built a tremendous element of technology into the IFG 50/50 franchise. This technology enables franchisees to work smart and not work hard; to put their capital to work, rather than putting themselves to work; and, naturally, to enjoy the benefits that come from being part of such a system. www.interfacefinancial.com.au/franchise

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e x pert a dv i c e

Obsess over your customers, not your competitors Have you ever noticed the performance difference between two very similar businesses? One seems to be totally on top of things and the other you can tell is struggling.

so on. So how is it that one business can dominate the other and achieve higher margins?

Considering the market conditions, they have the same location, product or service, sales catchment, employment options, and

The current economic outlook is challenging and the need to master customer experience is more critical than ever. When things get

In the majority of situations, market leadership comes down to one very specific and fundamental belief and process: they obsess over their customers and not over their competitors. They put their customer at the centre of everything they do, making sure there is a finely tuned process to deliver optimal service.

66 Business Franchise Australia and New Zealand

tight, consumers are far more selective with their spending. If you can’t deliver superior service, you will lose out on sales. Right now, the smart companies are reviewing their customer journeys – they have a point of difference in the way they think about customer experience. The key is their mindset around service innovation. These businesses approach the process differently to most. They define innovation as ‘change that adds optimal customer value’; they ensure that everything they do provides value to their customer, and if it doesn’t, they keep developing until they can prove it does. This approach ensures the

FE ATUR E : Busi N ess serv ices “A company that has mastered customer experience doesn’t need to worry about the competition, because the competition is already worrying about them.” Darrell Hardidge | Founder/ceO | SaGUITy

customer’s experience is front and centre, delivering true value beyond the price tag. Optimising customer value is directly proportional to the standards of service you deliver. If you just deliver a standard of satisfaction, you will sell what the market needs and mimimise average sale values. If you obsess over your customers and deliver a superior service model directed to what they value, you will open the door to selling a whole range of things that they want. This opens up your ability to engage with your customers, building a reputation as a forward thinking and value-driven supplier, and this keeps you front of mind. If you’re not remarkable with your service standards, then you’re not memorable and you will quickly become invisible. Marinating market relevance is essential if you want to leverage repeat business and average sale values. One hundred customers

“Different isn’t always better, but better is always different. Obsessing over customers and not over your competitors will build you a powerful reputation of being better.”

averaging $1000 per year is more profitable than 200 customers averaging $500 per year. Mastering the basics of service excellence, and then expanding, is safer than going full tilt to get a sale and not focusing on margins or future transactions. Obsessing over customers rather than competitors has one unique benefit that provides the highest margins and shortest sales cycles. It is rarely measured or understood why it happens and is rarely on any KPIs. It’s the personal referrals supplied by appreciative customers, and most importantly why they were given. Think of your own behaviour: most people are careful about how they give referrals, especially for high value products and services. The business must earn your trust before you will put your personal reputation on the line. For you to give a referral, they must have gone beyond your expectations and delivered a unique experience. The companies that you won’t risk your reputation for will be the ones that focus on themselves and their competitors, and forget about the value they should be giving to you. They have to keep spending money to get you back with special offers, rather than relying upon a respected and trusted customer relationship.

“if you obsess over your customers and deliver a superior service model directed to what they value, you will open the door to selling a whole range of things that they want.”

Obsessing over your customers will cause your team to think about how to improve and how to build security into the customer base. A company that has mastered customer experience doesn’t need to worry about the competition, because the competition is already worrying about them. The competition is more worried about how many of their customers they are about to lose because they cannot match your service experience. Investing in designing a unique customer journey and experience will pay massive dividends, and when done correctly can actually prove significant value on a balance sheet as well as the value of a company’s brand equity. Having a road map to train your team in service excellence is one the highest paying dividends you can achieve with your team. Different isn’t always better, but better is always different. Obsessing over customers and not over your competitors will build you a powerful reputation of being better. Darrell Hardidge is the founder and CEO of Saguity, and the author of The Client Revolution and The 10 Commandments of Client Appreciation. www.saguity.com

Business Franchise Australia and New Zealand 67

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S N A pS H OT: H A R M O N i Q

FRANCHISORS: ARE YOUR SYSTEMS HOLDING YOUR BUSINESS BACK?

It can also integrate financial, sales, reporting and CRM platforms that: • Consolidate all data in one easy-to-access place • Give a real-time view of every store and every aspect of the operation • Provide that critical big picture view of overall franchise performance • Build a solid platform for franchise growth.

Where are you feeling the pain? These are just a few of the signs that your systems may be holding you back:

Network expansion plus growth per store. That’s the twin mission and ultimate challenge for every franchise operation. It’s even more challenging if your franchise model comes with big-ticket purchases and complex inventory, distribution, sales, payment, customer tracking and business information requirements – requirements that your systems may be struggling to keep up with. Inefficient systems and unwieldy processes aren’t just an irritation. They can be a serious impediment to franchise growth. Order books. Spreadsheets. Outdated legacy systems. Arrays of disparate, cobbled-together, sub-optimal systems and manual processes. These are what too many franchisors still rely on to drive operations whose complexities demand much more.

time-devouring manual processes and improving workflow eﬃciency across the entire operation. • Minimising training time for frequently rotating staff. • Tracking and managing customer interactions – not just orders, but all the touch points that determine a customer’s relationship and value to the business. And perhaps most critically: • Providing the data and business intelligence you need to measure performance precisely across the franchise network – to control costs, identify growth opportunities, and stimulate greater sales and success from franchisees. Without a stable platform to wrest control over all of these complexities, a franchisor will struggle to expand easily into new outlets – let alone provide existing franchisees with the tools and support they need to grow their own businesses.

Automating for franchise growth

Where your systems may not be up to the job

One approach that’s gaining traction with a number of franchisors is using Enterprise Resources Planning (ERP) systems.

Franchises can hit the wall when their systems get in the way of:

ERP systems are business management software solutions that can automate a comprehensive range of even the most complex business processes.

• Maintaining accurate control over the warehousing or back-to-back purchasing of a wide and complicated range of products. • Keeping track of complex stock levels centrally and at every store, ensuring product availability across stores. • Controlling orders efficiently from start to finish, including tracking initial deposits and final payments, plotting delivery scheduling and managing a variety of delivery options. • Automating multi-outlet workflows – reducing human error, relieving staff of

Once used primarily by large manufacturing companies, newer-breed ERPs are now being embraced by a much wider range of businesses. And they’re especially well suited to the needs of a complex, big-ticket franchise operation. An ERP has the ability to automate everything from inventory, distribution, quoting, order management and staff workflow to data collection, reporting, revenue forecasting and even customer communications.

68 Business Franchise Australia and New Zealand

• Getting real-time data on inventory, aging and product performance is diﬃcult, if not impossible. • Order entry, processing and tracking is clunky and time-consuming. • Linking products to individual sales, orders to customers, and changing or moving around orders is a challenge. • You can’t forecast inventory requirements easily and accurately. • You can’t communicate with customers consistently or automatically about order status and delivery. • You struggle to get precise performance measures: staff performance, productivity, sales, margins, sales per hour and more. • Too much of the operation seems overly cumbersome and subject to human error.

‘If any of these difficulties hit home, it’s time for a harder look at where your systems are letting you down.’ Drew Arthur, Managing Director, Micronet Systems

Drew Arthur is the Managing Director of HARMONiQ and is focused on helping business leaders overcome ineﬃcient inventory, sales, business management and customer relationship management practices by leveraging cutting-edge technology. HARMONiQ has developed a free e-guide to help you evaluate the shortcomings and requirements of your systems. To download a copy of ERP Automation – is an ERP system the right move for my franchise? visit harmoniq.com.au/franchisingsoftware.

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E x pER T A dv i c E

HOW tO be A FrAncHise

tHAt DeLivers:

KEEPING YOUR CUSTOMERS HAPPY IN THE AGE OF CONVENIENCE

“The best franchises are driven by regular communication, respect and trust between the franchisor and franchisees.” Peter Lipinski | ceO | FaSTway COUrIerS

in today’s digital, ‘always on’ world, everyone is looking for instant gratification, convenience and a seamless experience. Gone are the days when people were happy to wait weeks for a product to arrive, or even have time to visit the post office during work hours.

So, what are some tips to ensure that your business can keep up, and continue to delight its customers? In my experience, there are three key ingredients in making this happen for a franchise.

Regular catch-ups with franchisees help ensure that the network is working collaboratively, which is essential when developing the tools, technology and systems that will support your business. Consulting

Work collaboratively as one team

Working together as a team is integral to the success of any business, but especially important for a franchise network. The best franchises are driven by regular communication, respect and trust between the franchisor and franchisees. These days it’s too easy to rely predominantly on internet communications. While email support packs and regular newsletters and updates are important, never underestimate the power of actual face time. Getting your franchisees and staff all in one room is incredibly beneficial – not only for them but for the franchisor, too!

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with your franchisees and staff gives you the feedback you need to ensure that you are investing in and implementing the right changes. Recently at Fastway we’ve focused on increasing face time with our franchisees, and it’s been wonderful to hear the positive feedback about how we’ve been listening and taking their experience and recommendations on board. This year the focus of our annual convention was ‘one vision’, highlighting just how important collaboration is for our company. We also hold in-house liaison visits – this year, rather than meeting with different groups over several days, we had one event for everyone. Hosting all of our regional franchisees in the one room allows us to keep on the same page and move forward more effectively as a team. One of the main reasons that people choose to join a franchise is to benefit from the support of a network. This involves not only

successful business. The key is to ensure that when you listen to your customers you are actually doing something with the feedback. Whether it’s through surveys, reviews or market research, you need to take that information and use it to implement changes that will help the franchise and franchisees improve relationships with customers every day.

tools and support from the support office but also networking with other franchisees. When you are organising conferences or events, make sure you organise plenty of opportunities for your franchisees to network with each other!

Embrace change and make it work for your business

With more than 1 billion users worldwide and over 2.5 million apps available across the Google and Apple digital marketplaces, smart phones have become much more than just a device in our pockets. For many, their smartphone is like an extension of their hand – a constant connection to the world and a means to getting what they want instantly. This has had a profound impact on customer service across all industries. In my experience, the key to dealing with this sort of disruption is always to take a step back, asking yourself not just how this

affects your business, but also how this can benefit your business. The rise of the sharing economy, for example, can seem threatening for many businesses, but you need to ask yourself the question: ‘how can we make this work for our business and our franchisees’ businesses?’ For example, at Fastway we decided to develop our own crowd-sourced delivery technology to help scale up and meet the growing delivery demand spurred by Australia’s booming e-commerce market. Blu Couriers taps into the sharing economy to help our regional and courier franchisees manage surges in delivery volumes; it’s also a fantastic solution for people in the community looking for a flexible way to earn some extra cash.

Listen to your customers

It’s no secret: listening to your customers is essential for running a

At Fastway, we know that 85% of customers want parcels delivered to their homes while 30% aren’t home during the day for deliveries. This is a challenge not just for our customers but also for the franchisee trying to complete the delivery. We know that our customers are busy and many simply can’t get to the post office in business hours. Our solution is Parcel Connect. Parcel Connect taps into the diverse business hours of local stores and petrol stations to provide a close and convenient drop-off and collection point for parcels. Customers can drop off and pick up their parcels at a time that suits them using one of several Parcel Connect locations across Australia. We have had excellent feedback from our customers and from our courier franchisees, too! As with any services and technology, customer feedback is crucial – not only throughout the development and launch but also post launch. So don’t forget to check in with your customers for feedback, and make sure you use that valuable information to help you and your franchisees – not just to deliver great service, but to exceed customer expectations. Peter Lipinski brings a wealth of knowledge and experience to his role as CEO of Fastway Couriers, with over 20 years’ experience in senior positions across transport, leisure, manufacturing and management consulting. His extensive industry experience and strong focus on customer service have been integral to Fastway’s successful innovation in parcel delivery. www.fastway.com.au

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FE ATUR E : BUSI N ESS SERV ICES

“Don’t forget to check in with your customers for feedback, and make sure you use that valuable information to help you and your franchisees – not just to deliver great service, but to exceed customer expectations.”

FE ATUR E : BUSI N ESS SERV ICES

S N A PS H OT: FC F FI R E & EL ECT R I CA L

FCF FIRE & ELECTRICAL WANTS YOU! Nothing is more important than safety. And when it comes to protecting Australian businesses from ﬁre – for their staff, customers, property or family – FCF has the right services, products and advice. FCF conducts fire safety assessments of home, office and industrial premises, and offers clients a complete fire protection service including supply, installation, testing, servicing and maintenance. Established in 2008 by founder and CEO Jacob Foster, FCF Fire & Electrical provides quality professional servicing and advice for business clients across the country. FCF is responsible for maintaining the fire, safety and electrical requirements of a national network of businesses to ensure that they meet government and industry standards. Mr Foster came to the industry with a background as an electrician. ‘What appealed to me about the fire industry was the repeat work that comes from routine maintenance,’ he says. ‘We’ll go to a site and test a fire extinguisher, for example, and if it fails we replace it – then six months later we’re back again.’ This type of recurring work enables franchisees to develop an ongoing relationship with their clients. ‘If I pick up a

new client, within six months I’m guaranteed to see them again,’ says Mr Foster. ‘The safety industry isn’t going anywhere, and it’s an industry that creates its own work.’ FCF proudly serves over 6500 clients across Australia. While primarily a businessto-business service, they also work with residential clients. Business clients of FCF include: • Schools and childcare • Local councils • Health services • Fuel stations • Hotels • Retail stores and offices • Community organisations. FCF was the first company to franchise in the fire industry, making it a true industry leader. Since the first franchise in 2012, there are now 14 franchises operating in Australia – and they are seeking to expand. ‘The majority of our franchisees are tradespeople, but you don’t have to be an electrician or a plumber to own a franchise,’ explains Mr Foster. ‘With our training and the help of the FCF support team, we make it really easy to transition into the fire industry. Australia’s fire standards are very straightforward, which makes life easy for people who want to enter the industry.’ Franchisees and employees all receive full training and support. ‘Our training goes above and beyond what is state-legislated, and our ongoing training makes the team at FCF one of the best,’ Mr Foster says. The company has a friendly and professional

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culture and believes in its core values of good people, family, an honest work ethic, and a willingness to be the best. It’s an attitude that is working well for the company and for their clients. ‘FCF have been providing fire equipment servicing and Test & Tag services to our company for nine months,’ one testimonial reads. ‘What began as a solution to a problem in North Queensland has quickly evolved into a solid working relationship down the eastern seaboard of Australia.’ FCF Fire & Electrical not only operates in capital cities, but also has a strong focus on regional areas. Given Australia’s large distances, having the right territory managers to provide services in these regions is key to the company’s success. As the company grows in Australia, expansion ‘across the ditch’ is also on the horizon. This would be a natural next step for FCF. ‘New Zealand would be ideal for us, as the codes and standards there are much the same as Australia,’ says Mr Foster. For anyone interested in becoming a master franchisor in New Zealand, this could be the ideal opportunity to represent the growing brand internationally. For prospective franchisees in Australia, FCF want to hear from you, regardless of your industry background or your location. ‘We are looking for franchisees anywhere in Australia, and I would encourage you to get in touch,’ Mr Foster says. For more information on joining FCF Fire & Electrical as a franchisee, visit www.fcfnational.com.au or call 1300 375 884.

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Business Franchise Australia and New Zealand 73

PR O FI L E : T H E LOT T

AUSTRALIA’S OFFICIAL LOTTERIES LAUNCHES NEW RETAILER REMUNERATION MODEL “The Retailer Remuneration Program gives every franchisee the potential to earn commission on digital sales.” ‘It provides our retail network with a new performance-based remuneration model – a commission-sharing model that allows outlets to receive a share in digital commission from customers who also purchase in retail, and access to commission on digital purchases by customers that have signed up as a result of being activated to join in store. ‘We know our customers want free membership, we know our customers want a simpler sign-up, and we know they want faster access to their prizes, so we’re making that happen.’ The new Retailer Remuneration Program is subject to regulatory approval and small price increases to some lottery products.

Australian retailers selling Australia’s ofﬁcial lotteries are set to beneﬁt from a range of new initiatives being introduced by some of the lottery operators at ‘the Lott’.

the potential to earn commission on digital sales if they achieve the required performance measures.

In March 2019, a new Retailer Remuneration Program was unveiled to the Lott’s network of around 3800 retailers. A number of new customer initiatives are also due to be introduced, including a free customer membership, win notification SMS service, digital wallet and a new-look the Lott membership card.

‘The program aims to provide customers with a consistent and seamless shopping experience, regardless of how they purchase – from shopping in a physical store, or digitally from a desktop or mobile device,’ he said.

The Retailer Remuneration Program was developed in consultation with industry groups and retailers, and incorporates performance-based remuneration which, amongst other things, gives each franchisee

General Manager of Lotteries Retail Antony Moore said the Lott’s new initiative ensures that retailers benefit from their customers’ evolving use of digital channels to complement their visits to physical retail outlets.

‘Importantly, this program is the result of months of consultation with retailers and key industry groups, including the Australian Lotteries and Newsagents Association (ALNA), Lottery Retailers Association (LRA) and Victorian Association of Newsagents (VANA), to benefit both our customers and our retailers.

The new Retailer Remuneration Program will not be introduced to South Australian retailers at this stage. The Lott is currently working with the regulators and government with the aim to work towards the inclusion of South Australian retailers in the future. For any small business owners thinking of becoming franchisee with the Lott, these customer and retailer focused changes will mean you have the opportunity to join Australia’s largest retail franchise network and an industry-leading franchise business. The Retailer Remuneration Program aligns with best practices implemented worldwide, and with support from the Lott, franchisees have the potential to grow and expand their business through better customer experiences. For more information on franchising with the Lott, and the Retailer Remuneration Program, please contact franchiseenquiries@thelott.com or visit www.thelott.com/franchise.

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CRT

When Australia dreams, we all win! Why join us at the Lott? The Lott* offers Australia’s official lottery games which Australians trust and love! Each year Australia’s Official Lotteries make dreams come true. With the help of our retailers, Australia’s Official government-regulated Lotteries play an important role in helping to support Australian communities with over $1.1 billion^ available for hospitals, schools and sporting groups. ^ State Lottery Taxes FY18 Australia-Wide (ex.WA). We are Australia’s largest franchise network with almost 4,000 franchisees, operating across all of Australia, except for WA.

*The Lott represents Australia’s Official Lotteries which are sold by licensed entities: Tattersall’s Sweeps Pty Ltd, Tatts NT Lotteries Pty Ltd, New South Wales Lotteries Corporation Pty Ltd, Golden Casket Lotteries Corporation Ltd, and Tatts Lotteries SA Pty Ltd.

Business Franchise Australia and New Zealand 75 CRTV-14554-Retail Sales Leads Pack - Bus Franchise Ad.indd 1

17/12/18 8:59 am

E X PERT A DV I C E

SEVEN QUESTIONS FOR THE ATO ABOUT

SINGLE TOUCH PAYROLL Single Touch Payroll (STP) reporting started on 1 July 2018 for employers with 20 or more employees. Over 80,000 employers are already reporting through STP, covering approximately 5.6 million employees. The legislation to extend Single Touch Payroll (STP) reporting to all businesses has now become law. I want you to understand the effect this change will have on your franchise, and what you can do to get your franchise STP-ready.

Why does Single Touch Payroll affect me?

Previously, STP was only required for substantial employers: those with 20 or more employees, who started reporting from 1 July 2018. The extension of STP to small

“We have developed STP in consultation with businesses, industry groups and software providers to be as seamless as possible to your current payroll process.” John Shepherd | Assistant Commissioner | Australian Taxation Ofﬁce

employers – those with 19 or fewer employees – requires them to start reporting any time between 1 July and 30 September 2019. Although this seems like a big change, you may already be able to start reporting. You should talk to your payroll software provider to see if you can start reporting through your current software. If not, you can follow these simple steps to get ready for STP and start any time between 1 July and 30 September 2019.

What is Single Touch Payroll?

Single Touch Payroll will utilise your existing payroll processes to report your

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employees’ tax and super information to the ATO when they are paid. We have developed STP in consultation with businesses, industry groups and software providers to be as seamless as possible to your current payroll process. Through STP, you will send your employees’ information to the ATO when you run your payroll. When we receive the STP data, the information is then matched to your records and your employees’ records. Your employees will be able to see their yearto-date tax and super information in their myGov account, if it is linked to the ATO.

Eventually, the data will also be pre-filled into activity statements for small to medium withholders at labels W1 and W2. This will make your quarterly reporting easier over time.

How do I get ready for Single Touch Payroll?

To get ready for STP you should review your current business practices and determine if you have the systems in place to start reporting through STP. This may include reviewing your current payroll process and talking to your trusted adviser to find the right STP solution for you and your business. You can find all of the reporting options available online at ato.gov.au/stp and you should talk to your trusted adviser on the best option for you and your business. If you already use payroll software, you should talk to your provider – most providers are already offering STP-enabled payroll software, or you may be able to update your current software to a version that is STP-enabled.

What if I won’t be ready by 30 September?

If you won’t be able to start reporting through STP by 30 September, you can ask for extra time to get ready. The ATO will have a deferral form available online from April 2019. If you are using payroll software, some software providers have been granted a later start date which covers their existing clients. Your software provider will be able to advise you if they have a deferral in place that covers you and your business.

What if I only have a few employees?

The ATO recognises that every franchise is a little bit different and we are working with software providers to provide low-cost solutions for micro employers: those with one to four employees. These options may include simple payroll solutions, portals and online apps. A number of low-cost solutions are currently available, with more becoming available in the lead up to 1 July 2019. A list of providers is available at ato.gov.au/ stpsolutions.

Do I have to pay myself through STP?

If you have closely held payees, like a company director or business partner, you do not need to report these payees through STP in the

“The ATO recognises that every franchise is a little bit different and we are working with software providers to provide low-cost solutions for micro employers: those with one to four employees.” 2019/20 financial year. You will not need to apply for this later start date. However, all other employees must be reported through STP. If you have a deferral, you will start reporting from your deferred start date – otherwise you will need to start reporting anytime between 1 July and 30 September 2019. From 1 July 2020 you will have the option to report closely held payees’ information quarterly through STP at the same time as your activity statement.

What if I can’t report?

The ATO understands that some franchisees won’t be able to report through STP for any number of reasons, and in these circumstances the ATO will provide exemptions from STP reporting. If you

are experiencing hardship, or are located in an area with intermittent or no internet connection, then you may eligible for an exemption. I would like to remind everyone that the ATO is here to assist you and your business transition to Single Touch Payroll. We have a range of materials available online at ato.gov.au/stp to make your transition as easy as possible. John Shepherd is Assistant Commissioner and Program Lead for Single Touch Payroll at the Australian Taxation Office. He has been the lead for Single Touch Payroll for the last three years. John has played an active role in the implementation of Super Stream and a number of other super reform initiatives including driving online superannuation account consolidation.

Business Franchise Australia and New Zealand 77

PR O FI L E : T U TO R D O CTO R

CHANGING LIVES THROUGH EDUCATION

Tutor Doctor is a franchise with a clear mission: To change the trajectory of students’ lives. Tutor Doctor is a leader in providing one-to-one supplementary education to students and adults through in-home tutoring around the world, with 640 franchises in 15 countries and growing. Tutor Doctor is uniquely qualified to serve the growing demand for supplemental education services in Australia. Students and parents are looking for a service that is dedicated to their needs; they already have classrooms filled with students, and they want something that will give them special one-to-one attention. Tutor Doctor is committed to the philosophy that every child can learn, but not every child learns the same way. This individualised approach to help students reach their goals is key to the franchise’s success. Tutor Doctor already has some operators throughout markets in Australia. One of those operators, Mark Gaskin, has grown his business to three territories in Sydney’s North West in the past 36 months. Gaskin said the country is eager to find education opportunities outside of its less-than-perfect school system. ‘Our school system is falling behind the rest of the world, and people are very aware of that,’ Gaskin said. ‘We hear it all the time from the media and politicians. There is an enormous opportunity for tutoring services to fill that gap, and the demand for high-quality tutoring services seems to grow every year.’ While a background in education is not necessary to start a Tutor Doctor franchise, Gaskin came to the franchise after leaving the school system. After a 30-year career as a primary school teacher, Gaskin decided to pursue an entrepreneurial inclination and invested in a fitness franchise. In 2015, Gaskin discovered Tutor Doctor and saw in it the perfect opportunity to combine his two passions. ‘When I stopped teaching, I was looking for a new challenge, and I wanted to own something, but I never lost that passion for education,’ Gaskin said. ‘Tutor Doctor allowed me to combine my experience in

78 Business Franchise Australia and New Zealand

the business world and my experience in education to create something important that I can stand behind. Though I do not tutor students personally, I am now running a business that is helping students and their families with something that I feel strongly about.’ New Tutor Doctor franchisees in Australia will benefit from a comprehensive training program and a robust suite of support services, which Gaskin said has been an enormous help, even with his wealth of experience in both education and franchising. ‘I had gone through training for the fitness franchise, and I was so impressed with the level of detail in training for Tutor Doctor,’ Gaskin said. ‘That level of support continued after I opened my Tutor Doctor and continues now, and not just from corporate. I frequently work with other Tutor Doctor owners, not just locally but around the world. There’s a genuine feeling of community and support that makes owners want to support each other.’ In 2019, Tutor Doctor is focusing their development efforts in Australia’s most prominent markets where the franchise is particularly well primed for growth: Sydney, Melbourne, Brisbane, Perth and Adelaide. Tutor Doctor is a home-based business with reasonable overheads. Initial franchise fees in Australia start at $49,700. We are looking first and foremost for entrepreneurs who want to make a difference in their community. To find out more information about franchising opportunities go to: www.tutordoctoropportunity.com

Business Franchise Australia and New Zealand 79

E X PERT A DV I C E

THE LONE

ENTREPRENEUR As you set out on your new business journey, entrepreneurship looms large like a mountain, intimidating and tempting you at the same time with its many roads and challenges to be climbed and conquered. The first step, they say, is always the hardest. A mixture of fear and trepidation has stopped many in their tracks. After all, entrepreneurship is a risky business. But as Seth Godin – author, blogger, and founder of Squidoo – says, ‘The only thing worse than starting something and failing ... is not starting something.’ For this very reason, every year tens of thousands of entrepreneurs turn their sights to franchising in order to remove some of the fear and trepidation of starting a business on their own. A franchise is often referred to as a ‘business in a box’: in many instances it comes ready researched, prepared, documented and set to open. Becoming a franchisee in an established organisation certainly gives an entrepreneur a sense of belonging and the feeling of being part of a family. However, the journey towards the right franchise opportunity can also be somewhat daunting, and as a lone entrepreneur you should always consider building a team of local advisors and professionals to both speed up and ease the process.

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The Accountant A local accountant could be your start-up’s saving grace: they are often well connected and attuned to the local business community, an area in which you will be operating. Accountants can provide invaluable feedback on local business conditions, in addition to helping in the more traditional accounting areas such as preparing cash flow and budget forecasts, tax planning, bookkeeping and more. Accountants have the skills and knowledge to make a profitable difference to your business at an early stage.

“As a lone entrepreneur you should always consider building a team of local advisors and professionals to both speed up and ease the process.” David Banﬁeld | President | the interFace FinanciaL GroUP

Even if you are considering a franchise which will possibly cover many of these elements – i.e. cash flow, bookkeeping, etc – you still have to look at the larger picture of your own operating company which will own your franchise.

The Attorney A good local attorney can aid your start-up journey by ensuring that you have the right legal framework for your new business. Frameworks differ from location to location – broadly speaking, they can be categorised into a sole ownership situation, a partnership or an incorporated company with some form of limited liability. The legal specialist will be able to advise you of the most suitable framework for your particular entity and venture. There may well be a crossover with your accountant in this area, as you may need to start thinking about forward tax planning and the appropriate vehicle to use to offer you the best journey.

The Bank Banks tend to be more supportive of new ventures than we realise. This is perhaps particularly true when that new venture is a franchise. Many banks have specialist units that are geared specifically to the franchise industry. These individuals have a wealth of knowledge and experience and, alongside your accountant and attorney, can provide you with invaluable advice based on their extensive background in the industry. Whether it’s for a bank, an accountant or an attorney, always remember that shopping around is a good thing. If you have professionals that are known to you, and with whom you have a relationship, then you have a good starting point. However, they may not be specialists in the specific discipline that you are looking for. If that’s the case, ask for

recommendations to get you in front of the right individuals. The banking world is very competitive, and banks are looking for your business; therefore, it makes sense to shop around to find the best arrangements and facilities that are available, and for the best price.

The Government Individuals starting a business invariably overlook the resources that both local and central government can offer. As taxpayers we have created these services, and therefore should strive to take advantage of the opportunities that they offer. There are numerous government grants, events, mentors, training and start-up programs available to new businesses. These are not overly advertised facilities, and not enough people know about them. Local research in this area is a must for all would-be entrepreneurs. As we said at the outset, starting a business can be a challenging task. However, with

the right team, including all the various components, you can make that task very manageable. If you are starting a business from scratch, then the team is certainly of paramount importance. If you’re starting a franchise, the team is equally important – notwithstanding that the franchisor may provide some of these professional services for you. Either way, you should not be a ‘lone entrepreneur’, but build a team that can provide you with expertise today and for your future growth and success. David Banfield is the president of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com.au

Business Franchise Australia and New Zealand 81

PR O FI L E : FR A N C H I S I N G E X P O

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The Franchising Expo is an independent forum that showcases a wide variety of business opportunities.

Snap Franchising CEO Peter Sinodinos (Left) with Ian Tagliabue and Kevin Lacey.

The Franchising & Business Opportunities Expo in Brisbane in June will see a host of new ideas, with plenty of ﬁrst-time exhibitors and fresh business concepts.

people. They were genuinely interested and asking the right questions – they were well informed.’

‘I think it goes to show how resilient and vibrant this industry really is,’ says Exhibition Manager Fiona Stacey. ‘Despite the bad behaviour of a few that has come to light, there are still many franchise companies offering a fair go, and in turn there are plenty of everyday Aussies who are keen to find out more about being their own boss.’

Stacey adds that for over 30 years the Franchising and Business Opportunities Expo has been best place to take the first steps towards being your own boss, or growing your business.

In Brisbane, visitors will be able to see new brands such as Concrete Doctor, OKAMI Japanese Restaurant, Living Concepts, Good Bean Espresso Bar, Hello Harry Burger Joint, PTC Phone Repairs, Regus with flexible office space, and many more. There will also be many renowned brands exhibiting such as Poolwerx, Aussie, Red Rooster, Mailboxes Etc., Oporto, Chicken Treat, Fully Promoted, Minuteman Press International, Subway, Snap, Wendy’s Milk Bar, The Lott and Anytime Fitness.

International franchise Broaster, with 11,000 outlets worldwide, also made its debut in Sydney. Distributor Salah Dib says, ‘It’s our first time exhibiting, and I can see that most of the enquiries are serious and genuine.’

‘It’s also an event where the industry comes together to educate, inform and network – the place where you can really turn your ambition into action.’ For information about exhibiting in the 2019 Franchising & Business Opportunities Expo, contact Fiona Stacey by email ﬁona@specialisedevents.com.au or by phone (03) 9999 5464.

‘The Brisbane Franchising Expo, and the one to follow in Melbourne in August, will once again offer visitors a forum to compare and research a diverse range of franchise opportunities,’ says Stacey. One of the most popular features of the Franchising Expo is the free seminar series at the centre of the show. At the Sydney show in March, these seminars featured speakers such as Snap Franchising’s CEO Peter Sinodinos, Andrew Morello from Yellow Brick Road and Rod Young, Chairman of DC Strategy. Dean Lightfoot from Baskin-Robbins exhibited at the show in Sydney for the first time, saying: ‘We were very pleased with the calibre of

82 Business Franchise Australia and New Zealand

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Business Franchise Australia and New Zealand 83

H OT TO PI C S

BEHIND THE

HEADLINES Franchise inquiry report ﬁnds 71 recommendations for change The long-awaited final report of the inquiry into the Australian franchise sector and the effectiveness of the Franchising Code of Conduct has made a total of 71 recommendations for outright changes to the Code, or other changes to conduct in franchise relationships. The Parliamentary Joint Committee on Corporations and Financial Services report was finally released on 14 March after being delayed three times – the report was originally due on 30 September last year, before being extended to 6 December, then 14 February. The inquiry report, titled Fairness in Franchising, recommends sweeping changes to the Franchising Code of Conduct covering 20 broad topics, as well as increased powers for the Australian Competition and Consumer Commission (ACCC) to investigate and prosecute breaches of the Code, including – among other things – banning non-compliant franchisors from granting new franchises.

New Franchising Taskforce to consider recommendations A major recommendation of the Fairness in Franchising report is the establishment of a new Franchising Taskforce to oversee the feasibility and implementation of many of the inquiry’s recommendations, and to

link government agencies including the Department of Treasury, the Department of Jobs and Small Business, and the ACCC. This taskforce would be responsible for evaluating the detail required to enable many of the recommendations, and while the report includes suggestions as to the composition of the taskforce, it does not elaborate on its methods of operation, reporting requirements or deadlines, potentially creating future uncertainty around the implementation of significant recommendations.

RFG targeted for further investigation amid administration claim The inquiry report noted that almost half of the submissions received from franchisees related to grievances with multi-brand listed franchisor Retail Food Group (RFG) or one of its brands. An entire chapter of the 22-chapter report is dedicated to a case study of RFG, and is highly critical of its performance as a franchisor. The chapter highlighted RFG’s acquisition on average of one new brand per year following its listing on the Australian Securities Exchange (ASX), which created an appearance of growth but often masked a high rate of store closures that in some years matched or exceeded the number of new outlets opened.

84 Business Franchise Australia and New Zealand

The report highlights escalating costs to franchisees imposed by the franchisor through fees, charges and rebates as practices designed to transfer profits from franchisees to the franchisor, and recommends that RFG and its current and former directors and senior executives be investigated by the ACCC, the Australian Tax Office (ATO) and the Australian Securities and Investments Commission (ASIC) for breaches of the Franchising Code, Australian Consumer Law, insider trading, tax avoidance, and breaches of disclosure and director’s duties, among others. Two of the inquiry’s nine public hearings were devoted exclusively to testimony relating to RFG, including the final hearing, prior to which former RFG managing director Tony Alford and one other executive unsuccessfully appealed to the High Court in a bid to avoid giving testimony. The report also noted that RFG continues to trade with the support of its lenders, with the company itself issuing a statement just two days before the release of the inquiry report to deny that it was contemplating the appointment of administrators.

Inquiry the most far-reaching yet The final report of the current franchise inquiry is the widest and most far-reaching of any franchise inquiry conducted to date, with the report itself running to 369 pages, containing 71 recommendations, and

taking input from nine hearings and 409 submissions. By contrast, the last joint committee inquiry into franchising, Opportunity not Opportunism, conducted 10 years earlier in 2008, ran to 165 pages, contained 11 recommendations, and took input from four hearings and received 168 submissions. Nearly a year passed between the release of the 2008 inquiry report and the announcement by the then federal minister, Craig Emerson, that the government would accept eight of the 11 recommendations in part or in full, which were included as amendments to the Franchising Code that took effect from 1 July 2010.

What next following the release of the inquiry report? The release of the franchise inquiry report on 14 March is unlikely to result in any immediate changes to the Franchising Code, based on the experience of the 2008 inquiry. In 2008, the report’s recommendations were first considered by the Minister for Trade – a process at the time which took nearly 12 months – before deciding which recommendations to accept (not all recommendations were accepted at the time). In the current political climate, with a federal election due in May, there is a very limited window of opportunity for the current minister, Michaelia Cash, to assess the report before the election is called and the government goes into caretaker mode. If Ms Cash does not respond quickly, the report may be considered by the next minister at some point after the election. Either way, many of the report’s recommendations require consideration by a Franchising Taskforce – which is yet to be assembled, and for which no reporting timeframe has been established. Even if the taskforce were convened prior to the election, it would likely take some time to assess the large number of recommendations the inquiry report has referred to it. In the meantime, franchisors should assess the likely impact of the recommendations on their businesses, and what changes they may need to implement to accommodate the inquiry’s recommendations.

Boost Juice prepares for stock exchange listing The private equity majority owner of Boost Juice is reportedly preparing the chain’s parent company, Retail Zoo, to be floated on the ASX in the second half of this year, according to a media report.

The Australian Financial Review reported that Bain Capital, which owns a 70% stake in the group, is preparing to exit via an initial public offering. In addition to signature brand Boost Juice, Retail Zoo also owns Salsa’s Fresh Mex Grill, cafe chain Cibo Espresso, and burger chain Betty’s Burgers & Concrete Co. Bain acquired its stake in the company in 2013 when the business was valued at $185 million. Jason Gehrke | Director Franchise Advisory Centre

Australians win international franchise competition Brisbane-based City Cave Float and Wellness Centre has won the NextGen in Franchising Award at the 2019 International Franchise Association annual conference in Las Vegas, according to the FCA. The annual competition invites millennial entrepreneurs from around the world to submit innovative business ideas that they could develop and grow using a franchise model.

Media storm erupts over ‘entitled millennials’ comments An Australian franchise executive triggered international headlines after commenting in a news interview on workplace changes that that young workers are no longer willing to do unpaid work experience to advance or start their careers, referring to them as ‘entitled millennials’ who expect too much, according to a media report. The comments by coffee franchise Muffin Break’s general manager Natalie Brennan quickly went viral, generating a backlash from social media users who misread the comments as supporting worker exploitation. Brennan attempted to clarify her stance as referring to internships and work experience for head office, rather than cafe-based roles. However, a number of successful business people who began their careers in unpaid positions, along with other management peers, agreed that millennials have ‘unrealistic expectations’, with regards to both starting salaries and seniority of starting positions.

Australia’s last Blockbuster store closes The last Australian store of home movie and video game rental franchise Blockbuster has closed in Perth, leaving one remaining store operating in the United States in Bend, Oregon, according to a media report. The owners of the Perth store expressed regret at having to close, attributing the demise of the business to the rise of streaming services such as Netflix.

Swim school franchise faces further scrutiny The FCA has requested an investigation by the ACCC into troubled swim school franchise Jump!, following an increasing number of complaints against the company from franchisees and contractors, according to a media report. While Jump! is not a member of the FCA, the industry body maintains that ‘poor behaviour by franchisors affects all franchises’, recommending that the ACCC investigate potential breaches of the Franchising Code by the company. A representative from Jump! reportedly stated they welcome a review by the ACCC, maintaining an earlier stance that issues related to the delivery – or lack thereof – of operational businesses to paid-up franchisees are due to tightening regulations and the need for third-party approvals.

Franchisor found guilty of unconscionable conduct Former hand car wash and detailing franchisor Geowash has been found guilty in the Federal Court of a number of offences including acting unconscionably, making false or misleading representations, and breaching the Franchising Code of Conduct by failing to act in good faith, according to an ACCC press release. A three-year long investigation by the ACCC into Geowash culminated in the court finding, among other things, that the business made false or misleading representations on its website by indicating monthly average revenues to prospective franchisees with no ‘reasonable basis’ for the claim, and suggesting commercial relationships or affiliations with major corporations, such as Kia, Shell, and IKEA, that did not exist. Geowash was placed into voluntary administration in October 2016. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 85

E X PERT A DV I C E

BUYING A FRANCHISE?

IF IT DOESN’T ADD UP, DON’T SIGN UP “It is important to understand whether restrictions on your choice of supplier could have a negative effect on your bottom line.” those things cheaper at the supermarket. Then we found out that some of the suppliers pay money to the franchisor every time we purchase from them. No wonder they are so expensive. We feel trapped.’ As part of our role, the ACCC conducts targeted compliance checks of franchise systems. Our current compliance checks are focused on the cafe, restaurant, and take-away food services industry, because we receive more Franchising Code related reports about franchise businesses in this industry than any other.

If you’re buying a franchise – particularly for the ﬁrst time – getting a complete understanding of the startup and operating costs is essential. The Australian Competition and Consumer Commission (ACCC) is responsible for regulating the Franchising Code of Conduct and provides guidance to prospective franchisees. The Franchising Code requires franchisors to give current information about the franchise, including start-up and running costs, to people thinking about buying a franchise. This information must be given regardless of whether it encourages the person to buy. We receive about 400 complaints each year about franchising and many of these are from

franchisees. The following is a hypothetical case study that highlights some of the common complaints reported to us. ‘They told us it wouldn’t cost more than $350,000 to open the cafe, but it ended up costing $450,000. They said it was because of an improvement to the fit out and the equipment. We’ d mortgaged our home and borrowed as much as we could to get the $350,000. When we needed more money, the bank wouldn’t extend the loan. So we borrowed from family members, just to get the cafe open. We knew we’ d lose our money if we pulled out at that stage. We were told there would be some restrictions on who could supply things like the fit out of the cafe, the equipment and the point-of-sale system. But it also turned out that we couldn’t choose where to buy basic things like milk, bread, coff ee and soft drink. We even had to buy sandwich fillings from their supplier. And their suppliers charged too much – we could buy

86 Business Franchise Australia and New Zealand

Through our compliance checks we are assessing: • Whether prospective franchisees are properly informed before they sign a franchise agreement, in situations where they can only buy certain goods or services from suppliers specified by the franchisor. • Whether prospective franchisees are properly informed about any rebates or benefits a franchisor gets when franchisees buy from specified suppliers. • Whether prospective franchisees are properly informed before they sign a franchisee agreement about the true costs of setting up and operating the franchise. • Whether or not the disclosure document lists the contact details of current and former franchisees in enough detail to allow someone thinking of buying a franchise to make contact and ask questions. • If a person is buying a franchise within an

“The franchise agreement must also be provided in signable form, together with a copy of the Code, at least 14 days before a franchise agreement is entered into by a prospective franchisee.”

existing site or territory, whether the details about the circumstances in which former franchisees ceased to operate have been provided to them. Incomplete or inaccurate information, or a poor understanding of costs and supply restrictions, could lead to franchisees becoming financially stretched and put their investment and livelihoods at risk. It could also lead to a franchisor facing accusations of breaching the Franchising Code and the Australian Consumer Law.

Understanding the disclosure document Important information, like the cost of setting up and running a franchise, or whether a franchisee can only buy goods from specified suppliers, should be in every disclosure document. A disclosure document is a mandatory document that must be provided by franchisors to prospective franchisees before they enter into a franchise agreement. The franchise agreement must also be provided in signable form, together with a copy of the Code, at least 14 days before a franchise agreement is entered into by a prospective franchisee. If you have not already

“A disclosure document is a mandatory document that must be provided by franchisors to prospective franchisees before they enter into a franchise agreement.” Mick Keogh | Deputy Chair aUstraLian coMPetition and consUMer coMMission

done so, you can use this time to consider whether to negotiate any changes to the franchise agreement.

Item 10 – supply restrictions and rebates

It is essential to take the time to read these documents thoroughly. Remember, 14 days is the minimum time that franchisees have to read, understand and get professional advice about these documents, not the maximum time. While all disclosure documents in Australia must follow a prescribed format set out in the Franchising Code, the detail in the disclosure document will be specific to the franchise. Outlined below are two important parts of a disclosure document. This list is not comprehensive, and you should always seek independent professional advice about your individual situation.

In a disclosure document, Item 10 focuses on the supply of goods and services to a franchisee. Item 10.1(b) of a disclosure document requires franchisors to provide details of restrictions on purchases of goods or services by the franchisee. This is relevant to franchise businesses in which franchisees are only allowed to purchase certain goods or services from specified suppliers. For example, if you are involved in a coffee shop franchise and you are only allowed to buy beans from one supplier. This can be critical to the success of a business, because it means if these coffee beans are expensive, you can’t shop around for a better deal.

Business Franchise Australia and New Zealand 87

E X PERT A DV I C E

“Calculate your staff wages using the correct award rates from the Fair Work Ombudsman website. Ensure you can afford to pay your staff and yourself.”

Item 14 – costs of setting up and operating a franchise Item 14 provides details about the costs and expenses that may be payable by a franchisee to set up and operate the franchised business. These costs can be significant and can vary based on things such as your turnover. It is important to fully understand these costs, because if you cannot meet them you may inadvertently breach your franchise agreement. Item 14.3 requires the franchisor to specify the costs and expenses of establishing a franchised businesses. In the case study above, the disclosure document should have included price ranges covering the improved fit out and equipment. Items 14.6 and 14.7 require the franchisor to specify the costs and expenses of operating the business on an ongoing basis. Be sure to test all figures set out in Item 14, and do your own calculation of staff wages using the correct award wages. You can find these on the Fair Work Ombudsman website. Ensure you can afford to pay your staff and yourself.

After reading Item 14 and making your own calculations, you can then ask past and current franchisees about whether estimates they were given before signing matched up in reality.

Informing yourself about the risks If you are thinking about buying a franchise there are four key things you should do to assess risk. These are: 1. Read and understand your disclosure document and franchise agreement 2. Talk to current and former franchisees 3. Take your time 4. Get independent professional advice. Obtaining independent advice from a professional with experience in franchising is vital. We still find that too many franchisees fail to get any independent advice. Accounting and/or business advice is particularly important to help you understand the costs of starting and running the franchise, and the impact of any supply restrictions or rebates.

88 Business Franchise Australia and New Zealand

After you’ve obtained advice, remember: if it doesn’t add up, don’t sign up. The information in this article is for guidance purposes only and does not constitute or substitute for legal advice. When considering a franchise opportunity, seek advice from a lawyer, accountant and business advisor with franchising expertise.

Mick Keogh was appointed as Commissioner of the ACCC in 2016, and then as Deputy Chair in 2018. His role at the ACCC includes involvement in a range of committees, as well as oversight of the small business, franchising and agriculture units of the ACCC. The ACCC has a range of educational resources dedicated to educating small business about their rights and responsibilities under the Competition and Consumer Act. These are available at: www.accc.gov.au/smallbusiness, along with specialist franchise training at: www.accc.gov.au/ccaeducation. To keep up to date with the latest Franchising Code developments, subscribe to the ACCC’s Franchising Information Network at: www.accc.gov.au/media/subscriptions/ franchising-information-network

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TAILORED TO YOUR FRANCHISE’S UNIQUE NEEDS Manage sales, accounting, marketing, inventory, workflow, business management and more – all-in-one unbelievably flexible system that can grow as you grow. On-the-go access to all your franchise outlets Seamless collaboration between all sites and departments Ability to measure business performance in real time Simple, powerful, scalable, and easy to use Fastest customisation times in the industry Made for complex needs of a far-flung franchise operation

SEE HOW COULD POWER UP YOUR FRANCHISE To get our FREE EGUIDE: IS ERP RIGHT FOR YOU? Or book a no-obligation ONLINE DEMO – or just have a chat:

Level 6, 64 Marine Parade (Po Box 10857) Southport QLD 4215 P 07 5591 2522 F 07 5591 2511 Contact Sam Rees E sr@ippartnership.com.au www.ippartnership.com.au

A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.

Visit harmoniq.com.au/business-franchise or call 02 9542 2000

Franchise BUSINESS

AU S TR A LI A A N D N E W Z E A L A N D

THE MAG A ZINE FOR FR ANCHISEES Lvl 2 100 Wellington Parade, East Melbourne VIC 3002 P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E robert@mmrb.com.au www.mmrb.com.au

ROBERT TOTH - 30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE. ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES. Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients.

Professional services listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside Australia) and speak to one of our sales executives.

www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz Business Franchise Australia and New Zealand 89

L I ST I N GS

FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

CONVENIENCE RETAIL & FUEL

670+

FCA, AACS

(site specific– part of Min. Investment)

Average of $775,000

HEALTH AND FITNESS

worldwide/

$30,000 + GST

$150,000 $200,000

9ROUND – 30 MINUTE KICKBOXING FITNESS 1/238 Old Cleveland Road, Coorparoo, Queensland, 4151 Ph: 0415 345 794 Email: mvarley@liftbrands.com Website: www.9round.com.au/own-a-franchise

APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

800+ 43 Aus & NZ

ELECTRICAL TEST AND TAG

FCA

$35,000

$52,000 + GST + Vehicle

BATTERY RETAILER

110

FCA / ARA

Initial Fee $55,000 (Excl GST)

250,000 (Excl GST) Incl the initial franchise fee

FAST FOOD, HAMBURGERS, FISH & CHIPS

FCA, VECCI, C4G

$30,000

$150,000

RETAIL, POOL & SPA SERVICE

FCA, SPASA

$60,000

From $420,000 + GST

DECK AND TIMBER RESTORATION

HYGIENE PRODUCTS & SERVICES

33 in AUS, 18 in NZ

Franchise Council of Australia

None

$10,000 - $300,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

Franchise Council of Australia

$50,000 + GST

$500,000 $700,000

LEADERS IN FIRE, ELECTRICAL & SAFETY

10+

FCA

$31,500 to $49,500 ex GST

RESTAURANT

FCA, FANZ

Initial Fee: $50,000

$350,000+

FREIGHT AND LOGISTICS

Aust 50 Int 200+

$64,950

MOBILE POOL SHOP & POOL SERVICE

100+

FCA

$69,000

$69,000 + Vehicle

HAIRDRESSING

210+ across Australia, NZ & UK

FCA

$18,000 $35,000

$80,000 - $240,000

SKIN TREATMENTS, LASER HAIR REMOVAL & COSMETIC INJECTABLES

125 across Australia & NZ

FCA & FANZ

$50,000

$290,000 $350,000 + GST AUD

GROUP PERSONAL TRAINING

13 Studios

FCA

Franchise Fee $20,000

WINDOW & DOOR REPAIR/MAINTENANCE

FCA, Australian Windows Association, Strata Community Australia, EBIX Trades Monitor

$40,000 + van, includes: van fitout and wrapping, tools, stock, digital marketing, accounting package, dedicated territory

$350,000+

$20,000 $50,000

$20,000

BATTERY WORLD Level 3, 203 Wharf Street, Spring Hill QLD 4000 Ph: 1300 793 209 Email: franchise@batteryworld.com.au Website: www.batteryworld.com.au/Franchise-Opportunities

BK’S TAKEAWAY 95 Princes Hwy, Trafalgar VIC 3824 Ph: 03 5633 2131 Email: admin@bkstakeaway.com.au Website: www.bkstakeaway.com.au

CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise

DECKSEAL PO Box 4093, Burwood East VIC 3151 Ph: 1800 332 525 Email: admin@deckseal.com.au Website: www.deckseal.com.au

ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 0447 743 157 Email: info@ecomist.com.au Website: www.ecomist.com.au

FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au

FCF 1/6 Victory East St, Hervey Bay Qld 4655 Ph: 1300 323 753 Email: sales@fcfnational.com.au Website: www.fcfnational.com.au

FCA & AIG $65,000 + GST, (Australian Industry $30,000 + GST (incl Franchise Fee) Group) + vehicle

HOG’S AUSTRALIA’S STEAKHOUSE H/O: 152 Shore Street Cleveland QLD 4163 Ph: 1800 464 783 Email: geoffhargreaves@hbca.com.au Website: www.hogsbreath.com.au

INXPRESS AUSTRALIA PTY LTD 3/14 Burke Crescent North Lakes QLD 4509 Ph: 1300 469 773 Email: david.wilkinson@inxpress.com Website: www.inxpress.com.au

JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: (AUS) 1800 334 498 (NZ) 0800 100 114 (toll free) Email: bdm@justcuts.com Website: www.justcuts.com

LASER CLINICS AUSTRALIA Level 2 / Unit 21, 39 Herbert Street, St Leonards NSW 2065 Ph 0402 171 399 or 0400 303 272 Email: franchiseopportunities@laserclinics.com.au Website: www.laserclinics.com.au/franchise

LISTEN TO YOUR BODY First Floor 19/21 Centreway, East Keilor VIC Ph: 03 9331 5673 Email: franchise@listentoyourbody.com.au Website: www.listentoyourbody.com.au

LOCK & ROLL 38 Redfern St Wetherill Park NSW 2164. Ph: 02 9651 3444 Email: franchise@lockandroll.com.au Website: https://www.lockandroll.com.au

MAGNETITE WINDOWS 36 Garema Circuit, Kingsgrove NSW 2208 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au

90 Business Franchise Australia and New Zealand

WINDOW INSULATION

6 franchises AWA, HIA, WFAANZ & 12 dealers

FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

MOBILE SKIP HIRE

FCA

$67,000 $97,000

$67,000

SOLAR SHEILDING NANOTECHNOLOGY WINDOW TREATMENTS

$26,000

@26,000

BEAUTY & LASER CLINIC

$50,000 plus GST

$550,000 plus GST

HYDRAULIC SERVICE AND MOBILE CONNECTOR SPECIALISTS

120

$15,000

VARIOUS OPTIONS

MOBILE TOOLS AND EQUIPMENT FRANCHISE

175+

FCA / FANZ

Start-up cost from $50,000

PRINT, DESIGN, WEBSITE

150+ AUS & NZ

FCA, FCNZ & Print Industries Association of Australia

$35,000 AUD

From $50,000 AUD

RESURFACING

100+

From $5,000

$20,000 to $64,350 Finance avail from $75 p/w

LOTTERIES

Approx 4000

Varies, dependent State/Territory

FCA, BFA

$40,000

$150K - $400K depending on size & concept

MOBILE SKIPS Unit 2, 26-36 High Street, Northcote VIC 3070 Ph: 1300 675 477 Email: franchising@mobileskips.com.au Website: www.mobileskips.com.au

NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 1800 267 924 (1800 COSY 24/7) Email: info@nanoshield.com.au Website: www.nanoshield.com.au

NIRVANA BEAUTY LASER CLINICS Ph: 0413 564 565 Email: marc@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au

RYCO 24.7 19 Whitehall Street, Footscray VIC 3011 Ph: 03 9680 8000 Fax: 03 9680 8001 Email: sales@ryco247.com Website: www.ryco.com.au

SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Ph: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au

SNAP PRINTING Ground Floor, Building G, 12-24 Talavera Road, North Ryde NSW 2113 Ph: 02 8870 5106 Email: franchiseenquiries@snap.com.au Website: www.snap.com.au

SPRAY PAVE AUSTRALIA GPO Box 501, Greenacres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Chris Bylhouwer Email: spraypave@senet.com.au Website: www.spraypave.com

THE LOTT

87 Ipswich Road, Wooloongabba QLD 4012 VIC, TAS & NT – Tatts, Tatts NT – 07 3877 1095 NSW & ACT – NSW Lotteries – 07 3877 1118 QLD – Golden Casket – 07 3877 1117 SA – SA Lotteries – 07 3877 1096 Email: franchiseenquiries@thelott.com Website: www.thelott.com/franchisee

THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 or +61 431 727 004 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au

THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au

TUTOR DOCTOR 830 Dixon Road, Toronto, ON, M8W 6Y8 Ph: 0413 011 899 Email: opportunity@tutordoctor.com Website: www.tutordoctoropportunity.com

CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS

RETRO-FIT DOUBLE GLAZING

4 AUS, 42 NZ

AWA

$40,000

Varies depending if vehicle needed

ON-TO-ONE IN HOME TUTORING

640

CFA, IFA, FCA, BFA, FASA

From $49,700

$65,000

DRIVE THRU CAFÉ

Proud Member of the FCA

Upon Request

$750 000

ZARRAFFA’S COFFEE 124 Distillery Road, Eagleby QLD 4207 Ph: (07) 5500 0800 Email: Christine.allsopp@zarraffas.com Website: : www.zarraffas.com/franchising

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to: www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 91

A—Z D I R ECTO RY

7-ELEVEN At 7-Eleven, we take a different approach to franchising. We take care of the things that are a hassle about being a small business owner, and provide you with support every step of the way.

™

energy, love providing customers with great service, are great leaders and communicators and have an eye for detail. So if you think you’ve got what it takes, we’d love to hear from you.

We’re looking for people with bundles of

For more information: 03 9541 0711 www.franchise.7eleven.com.au

9ROUND – 30 MINUTE KICKBOXING FITNESS

ﬁnancing options, world class support, and systems and processes that can be replicated for multi-club ownership.

Why 9round?

With 43 locations open or in development across Australia and New Zealand, and over 800+ clubs open world-wide, there is no better time than to get on board with a choice of locations.

9Round delivers total body results in a quick and convenient kickboxing and functional ﬁtness workout. With no class times and a trainer present every step of the way, it’s among the fastest growing ﬁtness franchises. Franchise Opportunities Now Available We are dedicated to keeping the business model simple and the cost of entry low. We offer turnkey systems,

APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow proﬁtable and successful businesses.

BATTERY WORLD Over the past 20 years Battery World has expanded to be the largest and most comprehensive Australian battery retail franchise. The Battery World franchise network is a fast growing, sustainable, reputable franchise that continues to dominate the specialist battery market.

Contact Magdalena Varley to request a prospectus and learn more about opportunities to own a 9Round. 0415 345 794 mvarley@liftbrands.com 9round.com.au

No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

to start your own business backed by a nationally established franchise network. Our Batteryologists are everyday people who have a passion for their work and for helping their customers. To ﬁnd out more on becoming a Batteryologist and becoming your own boss contact us today!

With over 110 stores Australia wide and with more set to open in 2019, it’s never been a better time

Call us on 1300 793 209 or visit: www.batteryworld.com.au/Franchise-Opportunities

BK’S TAKEAWAY

industry. This means we have the right systems and processes in place to enable franchisees to build highly proﬁtable businesses.

BK’s Takeaway is a retail food outlet specialising in hot and tasty ready-to-go food and also offering a variety of dine-in options. BK’s Takeaway is all about traditional Australian fare – from hamburgers, potato cakes, and ﬁsh and chips, to sandwiches, coffee, and lots more. BK’s Burgers were also voted one of Victoria’s top 5 burgers. The BK’s Takeaway franchising system is based on over 20 years experience in the food and beverage

92 Business Franchise Australia and New Zealand

Becoming a franchisee with BK’s gives you the advantage of learning from our industry experience team to help you get started in your new venture. Not only will you receive on-going support from us, but you’ll also be part of a growing family of franchisees sharing similar goals and objectives. Call Tegan on 5633-2131 Email: admin@bkstakeaway.com.au Web: www.bkstakeaway.com.au

CLARK RUBBER Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.

DECKSEAL DeckSeal lead the way in deck and timber restoration and maintenance services, specializing in the treatment of new and existing timber decks, structures and features. We are a unique business, delivering in an extremely underserviced market space. DeckSeal offers everyday people the perfect opportunity to capitalise on their existing skills or quickly build a new set without the burden of learning a new trade. Full training and ongoing support are provided with operational manuals. Specialists in all aspects or timber restoration, preservation and outdoor maintenance, we undertake a wide range of projects including: decking, timber cladding, fences, screens and garage doors to name a few. We also clean and seal concrete and paving.

ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control. Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.

FASTA PASTA With our authentic Italian background and a 35 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-evolving menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2018. Loved for our affordable, fresh, family meals in relaxed, fully licensed surroundings, this is a

BUSINESS FRANCHISE AUSTRALIA AND NEW ZEALAND A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identiﬁed several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network. For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999

A timber deck is an iconic part of the Australian outdoor lifestyle and a key feature in countless homes across the country. With a continual ﬂow of enquiries and an overwhelming demand for our services, we just cannot keep up. DeckSeal currently has territories available in the Western, Northern, South Eastern, Bayside, Geelong/Bellarine Peninsula and Mornington Peninsula regions. Our territories are large and are all in huge demand for our services. Our current franchisees are enjoying the beneﬁts of the DeckSeal model and are booking at least 6 weeks in advance. If you want to be your own boss and have the support of a franchise system, love working outdoors and want a better work/life balance then a DeckSeal franchise is not to be missed. Contact Danielle on 1800 332 525 or email admin@deckseal.com.au

Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service. Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business. If you are interested in ﬁnding out more, please contact Gary Vandoros on 0447 743 157, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au

great opportunity to be part of our award winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks of training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600 email franchise@fastapasta.com.au, or visit our website www.fastapasta.com.au

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

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FCF FCF are industry leaders in the Fire, Electrical and Safety Industries. Having a major focus on business compliance allows for routine checks and repairs to correct the failure points. Being a legislated business allows for long term clients on a repetitive basis. Utilizing a software system that is purpose built to FCF means job management from the lead stage right through to invoicing and

HOG’S AUSTRALIA’S STEAKHOUSE Hog’s Australia’s Steakhouse is home to the famous 18-hour slow cooked prime rib and curly fries. A much loved restaurant group, Hog’s will celebrate 30 years of operation this year and boasts 75 restaurants across Australia and New Zealand. Last year, Hog’s Australia launched it’s quick service model, Hog’s Express, a smaller

INXPRESS Do you want to join one of Australia’s fastest-growing franchise businesses? As an InXpress franchisee you have the rare opportunity to capitalise on one of Australia’s fastest growing industry sectors: freight and logistics! Utilising global super brands like DHL,TNT, TOLL and Startrack, InXpress Franchisees consult small/medium business on their freight and logistics ensuring they receive world-class service and extra mile customer service. InXpress is not your average franchise. Benefits: • Low entry costs • Low risk • No inventory and no warehousing,

JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you

BUSINESS FRANCHISE AUSTRALIA AND NEW ZEALAND AUSTRALIA AND NEW ZEALAND

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then integration with Xero or Myob. FCF have worked tirelessly to create a system that means more time in the field completing jobs and less time quoting and following up with clients due to the automation. To find out more about FCF contact Jacob Foster on 0488446625 or alternatively to find out more information head to www.fcfnational.com.au

footprint proposition that complements the fullservice restaurants. It takes the form of both a static offering in shopping centres and service stations, as well as mobile food trucks, and specialises in burgers. Hog’s has also begun expanding its Mexican restaurant franchise, Funky Mexican Cantina. Funky’s offers authentic Mexican food with the freshest ingredients at a reasonable price, as well as a vibrant and lively atmosphere. Contact: disco@hbca.com.au

• No vans or trucks • High passive income What It takes to succeed: • High energy individuals who enjoy a fast paced environment • A passion to build a successful business • No previous experience in freight & logistics is required Locations currently available: • Newcastle,NSW • Perth.WA • Adelaide,SA • Brisbane,QLD

• Wolloongong.NSW • Melbourne.VIC • Sydney,NSW • Hobart,TAS • Geelong,VIC For more information, visit http://inxpressfranchises.com/ Contact our franchise development team on 1300 097 857 or sales.au@inxpress.com.

scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a ﬂat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au

JUST CUTS™ AUSTRALIA Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 100,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

JUST CUTS™ NEW ZEALAND At Just Cuts you don’t need to be a hairdresser to become a Franchise Owner, in fact most Just Cuts Franchise Owners are not hairdressers. How? Our systems, processes, support model and training opportunities empower your Stylists to think like an Owner and easily run the salon for you. Becoming a Just Cuts Owner in New Zealand means you belong to the largest and most loved hairdressing franchise in the Southern Hemisphere. You’ll join 24 salons in New Zealand and 201 in Australia providing style cuts for over 100,000 clients per week! Our dedicated Academy Team will guide and support you throughout the whole process of opening your salon, including training, business and management advice, a

LASER CLINICS AUSTRALIA At Laser Clinics Australia, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments to all Australians. Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments.

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Style your work and life your way with Just Cuts. Contact: Zenardia Anderberg 0488 600 036 or 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

comprehensive Operations Manual and a bespoke Grand Opening marketing campaign. And that’s just the start! As a Just Cuts Franchise Owner in New Zealand you’re joining a group of talented Franchise Owners locally in New Zealand and across to Australia whose spirit and enthusiasm is infectious. You’ll have regular opportunities to network online and in person at Owners events in New Zealand so you’re never alone! So, what are you waiting for? Get in touch today! Contact: Zenardia Anderberg 0488 600 036 or 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.co.nz/franchising LinkedIn: Just Cuts™ Franchising

partnership model reduces start up and ongoing operational costs. We seek out the most motivated individuals who will be empowered to take on the day-to-day responsibilities of running a successful clinic. Franchise partners receive a $100,000 salary from day one.

Laser Clinics Australia is an award-winning business with over 125 clinics in Australia and still growing.

We are looking for franchisees for new clinic locations in Perth and regional locations in VIC and NSW. Laser Clinics New Zealand have launched, and we are seeking business partners across the country.

Laser Clinics Australia offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia. Our unique business

Visit: www.laserclinics.com.au/franchise Email: franchising@laserclinics.com.au Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272

LISTEN TO YOUR BODY (LTYB)

LTYB currently have 13 Studios in Victoria and Queensland with expansion plans Australia Wide. We offer our franchise partners an exclusive territory, full marketing support, IT and Software support, Online Operations Manual access and training, Studio business coach, Franchisee Induction program, supplier discounts, professional development opportunities and everything required to open your studio.

In fitness, one size doesn’t fit all. LTYB sessions are individually programmed to drive 90%+ retention rates across all studios and build a strong local fitness community. Established in 2004, LTYB has proven progressive systems, high level franchisee support and strong goals of member results and Franchisee Profitability. LTYB look for motivated people who have a passion to make a difference to member’s lives. To be successful in the fitness industry, you need to walk the talk and continue to grow as a business leader and fitness leader.

LOCK & ROLL If you’re bit of a DIYer and a practical, hands-on person with an engaging, happy personality, then a Lock & Roll franchise could be worth considering. Lock & Roll is a specialist window and door repair, maintenance & upgrade service for domestic and commercial property owners and managers. We are looking for dedicated and customer focused people to become Lock & Roll

We are currently recruiting Franchise partners Australia wide. For further enquiries, feel free to contact: Ph: 03 9331 5673 Email: ben@listentoyourbody.com.au Website: www.listentoyourbody.com.au

Franchises to meet the strong existing demand for our services. It is a great opportunity for you to plan your future and join a franchise brand with strong rewards and real growth possibilities. We want to make sure that our offering is a good match for you. For more information contact Dom Galluccio, General Manager – Lock & Roll on 02 9651 3444 or visit www.lockandroll.com.au

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MAGNETITE WINDOWS Do you have a trade license or are you hands-on? Do you want to become your own boss? Your WINDOW of opportunity is now. As noise and energy efﬁciency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite specialises in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our

MOBILE SKIPS Since 2006 Mobile Skips has been giving Australians a simpler, better and cheaper alternative to old fashioned skip bins. During 2013 we began our successful partnership with Bunnings and since then have been introducing Mobile Skips to our happy customers all around Australia.

solutions provide all the beneﬁts of double glazing without the hassle of replacement windows. At Magnetite, we aim to exceed our customer’s expectation of comfort. We believe this starts with the ﬁrst contact and continues through an assessment, installation and after sales service. Join the team that has: • 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • Average franchisee tenure now over 15 years. To learn more, visit www.magnetite.com.au

their businesses and prosper within an authentic partnership. Mobile Skips are seeking enthusiastic self-starters who are passionate about customer service and would love the opportunity of growing their own business. As a Mobile Skips franchisee, you will be supported by proven systems, cutting edge IT and a support team that are invested in your success.

Mobile Skips is a simple, unique offering with great systems that allows our franchisees to grow

For more info go to: https://mobileskips.com.au/ franchising or call 1300 675 477

NANOSHIELD

dominant product with an effective business system to provide a cost-effective solution to a rapidly growing market with minimal competition in its class. Our unique business is simple to operate, scalable, affordable and highly rewarding. NanoShield treatments are generally carried-out during the day providing excellent work life & family balance. Contact: Ray Liew 1800 COSY 24/7 (1800 267 924) www.nanoshield.com.au

NanoShield’s energy saving nanotechnology window treatments will add value to homes by improving thermal comfort, energy saving, UV protection and condensation suppression. Franchises are available for discerning and passionate individuals who want to join a strong team and help improve the quality of life for Australians through the sale and installation of NanoShield Cosy 24/7! Share in this exciting ground ﬂoor opportunity as we match a globally

NIRVANA BEAUTY LASER CLINICS Nirvana Beauty Laser Clinics is at the forefront of the beauty industry, committed to offering the most advanced technologies to clients. We are experts in advanced skincare, laser and anti-ageing treatments with over 20 years’ industry experience. At Nirvana it isn’t enough to follow the crowd: the franchise chain was one of the ﬁrst in Australia to introduce revolutionary treatments such as Coolift and the lifting and tightening skin treatment HIFU. These treatments are bang on track with the trends for ﬁghting the ravages of time through non-invasive anti-ageing processes.

RYCO 24•7 RYCO Hydraulics is one of the largest hydraulic hose and ﬁttings manufacturers in Australasia. The RYCO Trade Mark has been established in the industrial market for over sixty years and is a trusted name for quality products and service. RYCO 24•7 is a member of the Franchising Code Council Limited, which administers the Franchising Code of Practice. The RYCO 24•7 Mobile Connector Specialists franchises was established over twenty years ago

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Nirvana Beauty Laser Clinics is looking for focused and determined individuals who can springboard their personal success from an established franchise chain, and help develop the brand’s presence around Australia, and reap fruits of own input. Locations available: Westﬁeld Miranda, Roselands, Westﬁeld Chatswood, Castle Towers and other locations available! For more information please contact Marc Akil at: Phone: 0413 564 565 Email: franchise@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au

and is a successful channel to market for the RYCO group. Target markets for RYCO 24•7 “product and services” being emergency breakdown and installation of hose and fittings to a large range of industries. Training is provided and conducted at RYCO’s design centre in Melbourne, or at the RYCO 24•7 Mobile Connector Specialists designated Service Centre. RYCO’s training packages meet a Nationally Recognised Standard and cover all aspects of the identification of hydraulic hose and fittings.

SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional

SNAP PRINT DESIGN WEBSITES The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60’s. Snap is one of the most recognised brands in Australia with a reputation in its ﬁeld of quality production and service, and a commitment to people. Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions.

SPRAY PAVE AUSTRALIA Earn up to $3,500 per week. We are a National Company specialising in all treatments and decorating for existing concrete. If you wish to have a proﬁtable home based business, with lifestyle hours, then we can direct work to you. All existing concrete is a job waiting for our treatments. Domestic, commercial and Goverment.

the LOTT Join us at the Lott – Australia’s official lotteries! The Lott offers Australia’s ofﬁcial lottery games which Australians trust and love! We are one of Australia’s largest franchise networks with almost 4,000 franchisees operating across all of Australia, except WA. Our franchise system complements a range of businesses including convenience stores, convenience supermarkets, convenience fuel outlets, pharmacies, tobacconists, newsagencies, hotels and clubs (SA), and more!

BUSINESS FRANCHISE AUSTRALIA AND NEW ZEALAND A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

technicians, with an established network of franchise operations across the globe. After 30 years in the Australian market, Snap-on continues to perform, providing robust ﬁnancial results for its network of over 175 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive ﬁnance package to assist new franchisees.

We are Multiple Award Winning Australian Franchise Success Story that has expanded its successful franchise model into Master Franchises in Ireland, China, New Zealand. For more information please contact Kevin Lacey at: Phone: (02) 8870 5106 Email: franchiseenquiries@snap.com.au Website: www.snap.com.au Facebook: https://www.facebook.com/ SnapPrintingAustralia/ Twitter: https://twitter.com/SnapAustralia LinkdIn: https://www.linkedin.com/company/snapprinting/

This is not a Franchise. Instead it’s an un-restrictive, fully supportive, Business License system. You chose when, where and how you work. No more rules or greedy fees. You keep all your proﬁts. Full investment $37,500 or use our easy payment plan from $5,000 deposit, plus monthly payments. Includes airfares to Adelaide Head Ofﬁce Training Centre. Established in 1991, Security with Australia’s largest and oldest network. FREE CALL 1800 688 888 Website: www.spraypave.com

Incorporating the Lott in your outlet could be more attainable than you think. If you would like to ﬁnd out more information, contact us on the contact details below! The Lott Thelott.com/franchisee Email: franchiseenquiries@thelott.com Phone: VIC, TAS & NT – Tatts, Tatts NT – 07 3877 1095 NSW & ACT - NSW Lotteries – 07 3877 1118 QLD - Golden Casket – 07 3877 1117 SA - SA Lotteries – 07 3877 1096

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THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.

With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au

THERMAWOOD

Become part of the success story with:

Thermawood Retro-Fit Double Glazing System is designed to retro-ﬁt double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.

• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.

Retro-Fitting ﬁtting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efﬁcient, reduce energy costs and reduce noise.

Please contact Thermawood Retro-Fit Double Glazing for more information.

Along with installing double glazing Thermawood installers also ﬁt draft/sound seals to all types of windows including double hung windows, casement windows and doors.

Info@thermawood.com.au www.thermawood.com.au 0455 555 330

TUTOR DOCTOR

background to operate. The Tutor Doctor franchise low overheads produces an excellent return on investment while franchisees enjoy the fulﬁlment of making a difference in their communities.

Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 640 locations around the world, Tutor Doctor has changed the lives of 270,000+ people by helping them their academic goals. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award winning homebased business model that requires no educational

ZARRAFFA’S COFFEE Award-winning Zarraffa’s Coffee is an Australian-owned and operated specialty coffee company that roasts and delivers the freshest coffee to almost 90 stores across south east Queensland, New South Wales and Western Australia.

AUSTRALIA AND NEW ZEALAND

Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you.

While each year Tutor Doctor has continued to grow at unprecedented rates, it is the commitment to the core philosophy – every child can learn, but not every child learns the same way – that remains the source of Tutor Doctor’s success. For more information got to: https://hubs.ly/H0dCmFV0 or call +61 413 011 899

introduction of hand-crafted, specialty coffee and is a pioneer of drive thru beverages in Australia. With a high number of multi-store franchisees and a healthy, measured expansion plan, Zarraffa’s has a number of store opportunities available across Queensland, NSW and WA.

Entering its second decade of retailing this year, Zarraffa’s has led the way in the

Visit www.zarraffas.com/franchising to register your interest and ﬁnd out more.

BUSINESS FRANCHISE AUSTRALIA AND NEW ZEALAND

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Darryl Morris

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BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 60 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry.

Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: •

Our business development and support • teams will assist you in building your successful • business. We have three exciting franchise models where we are looking for new, motivated • and business orientated franchisees for: • • Clark Rubber Retail Stores • • Clark Pool & Spa Shops • • Clark Rubber Pool Care Service Territories •

Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years Multi Award winning franchise system Unsurpassed initial training and ongoing support

If you would like to hear more about franchise opportunities in your area, please contact Selena Vance for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or selena.vance@clarkrubber.com.au

clarkrubber.com.au